Galaxy Corporation Uses the FIFO Method in Its Process Costing

question 38

Essay

Galaxy Corporation uses the FIFO method in its process costing.The following data pertain to its Assembly Department for June.
$$\begin{array} { | l | c | } \hline \begin{array} { l } \text { Units in process, June 1: materials } 55 \% \text { complete, } \\\text { conversion } 15 \% \text { complete }\end{array} & 800 \\\hline \text { Units started into production during June } & 5,200 \\\hline \begin{array} { l } \text { Units completed and transterred to the next } \\\text { department }\end{array} & 4,300 \\\hline \begin{array} { l } \text { Units in process, June } 30 \text { : materials } 50 \% \\\text { complete, conversion } 40 \% \text { complete }\end{array} & 1,700 \\\hline\end{array}$$
Required:
Determine the equivalent units of production for the Assembly Department for June using the FIFO method.

Compute and record the depletion expense for natural resources.

Understand and differentiate between various types of assets, including fixed, intangible, and natural resources.

Calculate and journalize gains or losses on the sale or exchange of assets.

Evaluate different depreciation methods and their effects on the financial health of a business.

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Definitions:

Exchange

The act of trading goods, services, or currencies between parties, either directly or through a medium of exchange like money.

Opportunity Cost

The cost of forgoing the next best choice when making a decision.

Muffin

A small, baked item often eaten for breakfast or a snack, typically sweet and sometimes filled with fruit, chocolate, or nuts.

Comparative Advantage

The competence of an individual or a group in executing a certain economic task with greater efficiency than an alternative one.