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Information for the Current Month for Process 5 Is Shown

question 118

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Information for the current month for Process 5 is shown below.  Direct Materials  Conversion Costs  Beginining work in process $4,600$2,060 Current month’s costs 46,40042,375 Ecuivalent urits based on the FIFO costingmethod 58,00056,500 Urits completech 55,000 Units in encing work in process 5,000\begin{array}{|l|c|c|}\hline & \text { Direct Materials } & \text { Conversion Costs } \\\hline \text { Beginining work in process } & \$ 4,600 & \$ 2,060 \\\hline \text { Current month's costs } & 46,400 & 42,375 \\\hline \text { Ecuivalent urits based on the FIFO costingmethod } & 58,000 & 56,500 \\\hline \text { Urits completech } 55,000 & & \\\hline \text { Units in encing work in process }-5,000 & & \\\hline\end{array}
Direct materials are added at the beginning of the process. Beginning work in process is 40 percent complete as to conversion costs; ending work in process inventory is 60 percent complete. The cost of ending work in process inventory totaled

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Definitions:

Product B

A placeholder name often used to refer to a secondary product in examples or case studies.

Sales on Account

Transactions where goods or services are sold and payment is deferred, creating accounts receivable.

Merchandise

Goods bought and sold by retailers.

Cash Collections

The process of gathering monies that are owed to a business by its customers or clients.

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