Determine equivalent units of the product, Cost Accounting

Assignment Help:

Determine Equivalent Units of the Product

Let assume there are 4,000 units of a product in ending inventory out of that 60 percent are fully complete whereas the remaining are 70 percent complete. What are the equivalent units of the product?

Solution

60% x 4,000 = 2,400 units completely complete.

40% x 4,000 = 1,120 units -Equivalent units

Net Equivalent units = 3,520 units

Assume we had net process costs of shs.7,040, after that every unit would cost shs.7,040/3,520 = shs.2

Related Discussions:- Determine equivalent units of the product

Prepare the appropriate entries for december 31, A corporation acquired a t...

A corporation acquired a truck on July 1, 2012, at a cost of $162,000. The truck has a six-year useful life and an estimated salvage value of $18,000. The straight-line method of d

Process of setting standards in standard costing, Process of Setting Standa...

Process of Setting Standards in Standard Costing Establishing correct a standard is extremely important due to the accuracy of the standards usually finds out the success of t

Calculate direct labour hour, Manson Manufacturing applies manufacturing ov...

Manson Manufacturing applies manufacturing overhead at a rate of $30 per direct labour hour a)when during the year was this rate computed b)Describe briefly how this rate was

Marginal costing and differential costing, MARGINAL COSTING AND DIFFERENTIA...

MARGINAL COSTING AND DIFFERENTIAL COSTING 1. Differential costing can be used both in case of marginal costing and absorption costing. 2. In case of marginal costing

Exploration costs, are exploration cost treated as an asset or expense or b...

are exploration cost treated as an asset or expense or both?

Variance analysis and standard costing, Variance Analysis and Standard Cost...

Variance Analysis and Standard Costing Standard costing is defined with CIMA like a technique that uses standards for revenues and costs for the purpose of control via varianc

Exploration costs, are eploration costs of a mining industry regarded as an...

are eploration costs of a mining industry regarded as an asset or expense or both?

Profit or loss on the disposal of the fixtures and fittings, This task invo...

This task involves the recording of non-current asset information in the general (nominal, main) ledger and other non-current asset matters. You are assisting in preparing the a

Post journal to four ledger coloumn, how to post journal to ledger four col...

how to post journal to ledger four coloumn

introduction of internal rate of return , Introduction of Internal Rate of...

Introduction of Internal Rate of Return The traditional internal rate of return (IRR) method of project selection has been shown to be inferior to the NPV method due to vario

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages