Asked by Ahmed El Shamlol on Jun 30, 2024
Verified
At Crenshaw Company materials are entered at the beginning of each process. Work in process inventories with the percentage of work done on conversion and production data for its Painting Department in selected months are as follows: Instructions
(a) Compute the physical units for July.
(b) Compute the equivalent units of production for materials and conversion costs for September.
Work In Process Inventories
Inventories that represent goods that are partially completed in a manufacturing process.
Conversion Costs
Costs related to transforming raw materials into finished goods, typically including direct labor and manufacturing overhead.
Physical Units
A measure of production output or inventory, quantified in terms of tangible goods or items.
- Attain proficiency and implement the assessment of equivalent units in a manufacturing context.
Verified Answer
July Beginning work in process −0− Started into production 12,500‾ Total units to be accounted for 12,500‾ Transferred out 11,000 Ending work in process 1,500 Total units accounted for 12,500\begin{array}{lr}&\text { July }\\\text { Beginning work in process } & -0- \\\text { Started into production } & \underline{12,500} \\\text { Total units to be accounted for } & \underline{12,500} \\\text { Transferred out } & 11,000 \\\text { Ending work in process } & 1,500 \\\text { Total units accounted for } & 12,500\end{array} Beginning work in process Started into production Total units to be accounted for Transferred out Ending work in process Total units accounted for July −0−12,50012,50011,0001,50012,500
(b) COMPUTATION OF EQUIVALENT UNITS
Learning Objectives
- Attain proficiency and implement the assessment of equivalent units in a manufacturing context.
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