Compute the cost per equivalent unit for each product

Reference no: EM131224202

Venus Brewery is a craft brewery that produces a special light beer for ladies. The beer are processed sequentially in two departments (Department X and Department Y) before the final products are transferred to the finished goods store.

On 1 February 2016, the work in process in Department Y consisted of 12,000 litres which were 80% completed. During the month, a total of 160,500 litres were started and 148,500 litres were completed and transferred out. On 29 February 2016, 15,000 litres remained uncompleted. The ending work in process was 60% complete.

The cost information for Department Y for the month of February:

Work in process, 1 February 2016?Cost transferred in from Department X during February Manufacturing costs added in Department Y during February Direct materials?Conversion costs?Total manufacturing costs, Department Y.

$$ 80,000

642,000 321,000

541,275

862,275 1,584,275

In Department Y, direct material and transferred-in costs are added at the beginning of the manufacturing process. However, conversion costs are incurred evenly throughout the manufacturing process.

Inspection at Department Y takes place when the products are 75% complete. Normal spoilage averages at 5% of the good units produced.?The firm uses the FIFO method of process costing.

Compute the cost per equivalent unit for each product cost category in Department Y for the month of February.

Calculate the cost of goods transferred to the finished goods store at the end of February from Department Y.

Calculate the cost of abnormal spoilage for Department Y in February.

Calculate the cost of ending work in process in Department Y at the end of February.

(b) Pass all the necessary journal entries.

(c) Define "equivalent unit". Explain how the concept is used in process costing. State the circumstances under which it may be appropriate to ignore the concept of equivalent unit. Give two (2) examples.

Reference no: EM131224202

Questions Cloud

Find the inverse of the coefficients matrix : Find the inverse of the coefficients matrix. What restriction on the parameters is needed for a solution to exist? In other words, what restriction is needed in order to make the coefficients matrix non-singular?

Write down categories of groups of people : Set a timer for 1 minute and write down categories of groups of people you know and interact with. (Some examples are friends, family, neighbors, co-workers, volunteer organizations, book clubs, and sports teams.)

Favoring national authority-liberals favoring states rights : Traditionally, conservatives have favored states' rights and liberals have favored national authority. Can you think of modern-day issues in which these long-standing preferences might be reversed, with conservatives favoring national authority and l..

List three significant events that have happened : This assignment should be helpful in generating and refining topics for your upcoming Narrative essay (look ahead to the Narrative Essay writing criteria). This practice also may be helpful in future writing projects.

Compute the cost per equivalent unit for each product : Compute the cost per equivalent unit for each product cost category in Department Y for the month of February. Calculate the cost of goods transferred to the finished goods store at the end of February from Department Y

What about the addition of pipelining : Does the addition of cache and virtual memory to a von Neuman system change its designation as an SISD system? What about the addition of pipelining? Multiple issue? Hardware multithreading?

Supply chain and prepare a brief write-up : Study the supply chain and prepare a brief write-up. If possible, present the supply chain as a flow chart and describe the supply chain.

What is your initial reaction to the essay : What is your initial reaction to the essay? Do you like it? Do you dislike it? Why? A narrative essay should not only tell a story, but also have some larger theme or idea for the reader to take away from their experience. What was the larger theme..

The articles from periodicals or newspapers : Find three articles in the library on the subject of your next speech.- The articles can be from periodicals or newspapers.

User Account

All Pages