Determine the equivalent units of production

Reference no: EM1374080

Forrests Gameboards Company manufactures games in 3 departments using a process cost system with an average cost flow assumption. chosen cost and production data for the Creation Department, the second department in the production process, for the month just ended, are as give:

Units in beginning work in process 5,000
Units received from Mixing Department 25,000
Units transferred to Finishing Department 20,000
Units in ending work in process ?
Units spoiled due to internal failure 3,000

Work in process, beginning inventory:
Cost from preceding department $ 4,200
Materials 1,960
Labor 895
Factory Overhead 685

Costs added during the period:
From preceding department $ 15,900
Materials 8,775
labor 4,550
Factory Overhead 3,770

The games are inspected at end of process in Creation Department to check any spoiled batches. Ending inventory is 75% total as to materials and 25% complete as to conversion costs. Spolage is unspecified to occur at the end of the process.

REQUIRED:

1. Determine the equivalent units of production for each cost element in the Creation Dep. for the month just ended.

2. Evaluate the average cost per equivalent unit for every cost element.

Reference no: EM1374080

Questions Cloud

Illustrate what is the role of inspection in manufacturing : Illustrate what is the role of inspection in both the manufacturing and service industry. Explain how does it relate to the idea of continuous improvement and the philosophies of the quality gurus, Deming, Juran, Feigenbaum and Crosby.

Much research has been directed on the effectiveness : Much research has been directed on the effectiveness of the evaluation process that numerous employers use. This is a particularly interesting topic for the reason that in many instances an employee's performance evaluation is linked to pay raises..

Finding the equilibrium price and quantity : Assume Springfield's economy moves into a recession and Y falls to $9 and increasing unemployment allows widget makers to decrease wages to $18 per hour.

Evaluate the affect of globalizationacross borders : Describe the roles and responsibilities that organizational managers and leaders play in creating and maintaining a healthy organizational culture.

Determine the equivalent units of production : Determine the equivalent units of production for each cost element in the Creation Dep. for the month just ended and evaluate the average cost per equivalent unit for every cost element.

In what circumstances would individuals be more effective : In what circumstances would individuals be more effective decision makers than groups? In what circumstances would groups be better decision makers than individuals?

Explain how many machines and labour must be employed : Assume labour is paid $200 a week and the cost of machine time is $100 per week. If the firm wants to produce 1225 units of output, explain how many machines and labour must be employed.

How alexis can maximize her cash on hand at the end of april : She must be able to pay cash for all corn at the time of purchase. Use linear programming to decide explain how Alexis can maximize her cash on hand at the end of April.

Think about a current occasion when you or somebody working : Think about a current occasion when you or somebody working close to you have attempted to introduce as well as manage a change in your part of the organization

User Account

All Pages