Production Has Just Been Completed for January 2014 by Colombo

question 71

Essay

Production has just been completed for January 2014 by Colombo Inc.The company utilizes a process costing system,and the following accounting and operating information was obtained from company records:
a.Beginning work in process inventory consisted of units totaling 8,200 that were 60 percent complete as of January 1,2014 (all direct materials were added to the units at the beginning of the production process that took place in the preceding month).
b.260,000 units were started during January.
c.At the end of the month,22,400 units were in work in process inventory and were 100 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs.
From the figures shown above,and assuming a FIFO costing flow,prepare in good form a schedule of equivalent production for the month ended January 31,2014.

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Definitions:

Monetary Error

A monetary error refers to inaccuracies or mistakes in financial transactions or accounting, which can impact financial statements or balances.

Confidence Interval

It refers to the range within which we expect a population parameter to lie with a certain degree of confidence, based on sample data.

Sample Mean

The average value of a given characteristic within a sample drawn from a population.

Purchase Order

A formal document issued by a buyer to a seller, detailing the products, quantities, and agreed prices for products or services.