Dickerson Company Uses a Process Costing System

question 86

Essay

Dickerson Company uses a process costing system.The following information relates to one month's activity in the company's Mixing Department.

The conversion cost of the beginning inventory was $6,500.During the month,$112,000 in additional conversion cost was incurred.
Required:
a.Assume that the company uses the FIFO method.Compute:
1.The equivalent units of production for conversion for the month.
2.The cost per equivalent unit for conversion for the month.
3.The total cost transferred out during the month.
4.The cost assigned to the ending work-in-process inventory.
b.Assume that the company uses the weighted-average cost method.Compute:
1.The equivalent units of production for conversion for the month.
2.The cost per equivalent unit for conversion for the month.
3.The total cost transferred out during the month.
4.The cost assigned to the ending work-in-process inventory.

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Definitions:

Generalized

Made broad or wide-ranging in application or understanding, without focusing on specifics or details.

Job Satisfaction

A measure of how content an individual is with their job, which can affect productivity and overall well-being.

Job Performance

The effectiveness with which job tasks are executed and completed by an employee or a group within an organization.

Modest

Exhibiting a moderate or low view of one’s importance, often characterized by humility and simplicity.