Determine the equivalent units of service

Assignment Help Accounting Basics
Reference no: EM131105976

E3-15 Royale Mortgage Company uses a process cost system to accumulate costs in its loan application department. When an application is completed, it is forwarded to the loan department for final processing. The following processing and cost data pertain to September.

1. Applications in process on

Beginning WIP:


September 1, 100

Direct materials

$ 1,000

2. Applications started in

Conversion costs

3,960

September, 900

September costs:


3. Completed applications during

Direct materials

$ 4,500

September, 800

Direct labor

12,000

4. Applications still in process at

Overhead

9,340

September 30 were 100% complete as to materials (forms) and 60% complete as to conversion costs.

Materials are the forms used in the application process, and these costs are incurred at the beginning of the process. Conversion costs are incurred uniformly during the process.

Instructions

(a) Determine the equivalent units of service (production) for materials and conversion costs.

(b) Compute the unit costs and prepare a cost reconciliation schedule.

Reference no: EM131105976

Questions Cloud

What unit value should be attached to each painting : What unit value should be attached to each painting, assuming item-by-item application of the lower-of-cost-or-net-realizable-value rule? Prepare journal entries to record each transaction.
Calculate the current density involved in the corrosion : Calculate (a) the current and (b) the current density involved in the corrosion of the iron
What are some qualitative factors analysts : What are some qualitative factors analysts should consider when evaluating a company's likely future financial performance?
Value of a european call option with a strike price : Suppose that Bigco is currently trading for $100 per share. We know that in one year Bigco stock will sell for either $150 per share (?ogood day??) or for $75 per share (?obad day??).
Determine the equivalent units of service : E3-15 Royale Mortgage Company uses a process cost system to accumulate costs in its loan application department. When an application is completed, it is forwarded to the loan department for final processing. The following processing and cost data..
What is the balance for the restructuring provision : Briefly discuss how the accounting for the restructuring provision can be used for earnings management.
Essay on the status of the glbt people : In 600- 1000 words write an essay on the status of the GLBT people in the U.S. today is not much different than it was before.
The accounts receivable balance : (Cash budget) The Accounts Receivable balance at October 1, 2000, for Skyscraper Architects was $606,900. Of that balance, $450,000 represents remaining Accounts Receivable from September billings.
Data and actual evidence suggest : From your point of view, does it make sense in light of standard macroeconomic thinking? What do data and actual evidence suggest?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Concept that a society ruler

What is the ideology supporting the concept that a society's ruler is God's direct representative on earth to administer justice and punish evil doers? The pursuit of happiness

  During the month of march lavonis companys employees earned

during the month of march lavonis companys employees earned wages of 64000. withholdings related to these wages were

  Redemption qualifies for sale or exchange treatment

The redemption qualifies for sale or exchange treatment, and Ali has no other transactions in the current year involving capital assets?

  In early january 2009 sanchez builders purchases computer

in early january 2009 sanchez builders purchases computer equipment for 102000 to use in operating activities for the

  Elliots escargots sells commercial and home snail

elliots escargots sells commercial and home snail extraction tools and serving pieces. currently the snail extraction

  Prepare a schedule to determine goodwill

For internal reporting purposes, JDE employed the equity method to account for this investment.Prepare a schedule to determine goodwill, and the amortization and allocation amounts.

  Royal company manufactures 19000 units of part r-3 each

royal company manufactures 19000 units of part r-3 each year for use on its production line. at this level of activity

  Firms financial well being

Cindy Lore, his accountant, says that more information is needed to determine the firm's financial well being. Analyze the situation and determine who is correct and support your position.

  Roland carlson is the president founder and majority owner

roland carlson is the president founder and majority owner of thebeau medical corporation an emerging medical

  On may 1 2012 chance corp issued 319800 7 5-year bonds at

on may 1 2012 chance corp. issued 319800 7 5-year bonds at face value. the bonds were dated may 1 2012 and pay interest

  Patient-day is often used to measure the volume of a

martin hospital has overall variable cost of 20 of total revenue and fixed costs of 40 million per

  Discussing summer employment

Jas Carillo was discussing summer employment with Maria Perez, President of Valparaiso Construction Service.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd