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Lindex Company uses a process costing system- The following data are a.docx

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Lindex Company uses a process costing system- The following data are a.docx

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Lindex Company uses a process costing system. The following data are available for one department for October: The department started 390,000 units into production during the month and transferred 410,000 completed units to the next department. Required: Compute the equivalent units of production for October, assuming that the company uses the weighted-average method of accounting for units and costs.
Solution
Equivalent units of production – Materials
Transferred completed units + Ending percent completion = 410000 + 0.7*30000 = 431000
Equivalent units of production – Conversion
Transferred completed units + Ending percent completion = 410000 + 0.5*30000 = 425000
.


Lindex Company uses a process costing system. The following data are available for one department for October: The department started 390,000 units into production during the month and transferred 410,000 completed units to the next department. Required: Compute the equivalent units of production for October, assuming that the company uses the weighted-average method of accounting for units and costs.
Solution
Equivalent units of production – Materials
Transferred completed units + Ending percent completion = 410000 + 0.7*30000 = 431000
Equivalent units of production – Conversion
Transferred completed units + Ending percent completion = 410000 + 0.5*30000 = 425000
.

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Lindex Company uses a process costing system- The following data are a.docx

  1. 1. Lindex Company uses a process costing system. The following data are available for one department for October: The department started 390,000 units into production during the month and transferred 410,000 completed units to the next department. Required: Compute the equivalent units of production for October, assuming that the company uses the weighted- average method of accounting for units and costs. Solution Equivalent units of production – Materials Transferred completed units + Ending percent completion = 410000 + 0.7*30000 = 431000 Equivalent units of production – Conversion Transferred completed units + Ending percent completion = 410000 + 0.5*30000 = 425000

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