Refer to the Following Information About the Finishing Department in the Davidson

question 122

Essay

Refer to the following information about the Finishing Department in the Davidson Factory for the month of June. Davidson Factory uses the FIFO method of inventory costing.
Beginning Work in Process inventory:
Physical units…………………………………………... 5,000 units
% complete for materials………………………………. 70%
% complete for labor and overhead……………………. 25%
Materials cost from May……………………………….. $7,350
Labor and overhead cost from May……………………. $3,125
Product started and completed:
Physical units…………………………………………… 40,000 units
Ending Work in Process inventory:
Physical units………………………………………….... 4,000 units
% complete for materials………………………………. 40%
% complete for labor and overhead……………………. 10%
Manufacturing costs for June:
Materials………………………………………………… $96,975
Labor and overhead……………………………………... $79,470
Compute equivalent units for direct materials, direct labor and overhead for June.

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Definitions:

Consumer Psychology

Branch of psychology that studies the habits of consumers in the marketplace.

Organizational

Pertaining to the structure or arrangement of parts within a system, often referring to entities like businesses or institutions and how they are managed.

Door-In-The-Face Technique

A persuasion strategy whereby a large, likely-to-be-rejected request is made first with the goal of making a smaller request seem more reasonable by comparison.

Foot-In-The-Door Technique

A persuasion strategy where a person is led to agree to a small request first, making them more likely to comply with a larger request later.