Ask Question
BusinessBusiness
8 March, 03:27

A company uses a process cost accounting system and the FIFO inventory valuation method. Its Assembly Department's beginning inventory consisted of 50,000 units, three-fourths complete with respect to direct labor and overhead. The department started and finished 127,500 units this period. The ending inventory consists of 40,000 units that are one-fourth complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. Goods in Process included direct labor costs of $24,000 and overhead costs of $32,000 for the period. The direct labor cost per equivalent unit is:A. $0.126B. $0.160C. $0.178D. $0.213E. $0.373

+1
Answers (1)
  1. 8 March, 06:56
    0
    B. $0.160

    Explanation:

    Start and Finished 127,500

    Ending Inventory 40,000 x 1/4 complete = 10,000

    Beginning 50,000 x 1/4 incompleted = 12,500

    Total equivalent units 150,000

    It will be, the started and completed, pus the ending inventory portion

    and the work done on the beginning inventory to finish it.

    Now cost would be: cost / equivalent units:

    Labor Cost: 24,000

    cost for labor: 24,000/150,000 = 0.16
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A company uses a process cost accounting system and the FIFO inventory valuation method. Its Assembly Department's beginning inventory ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Under continuous budgeting a new month is added to the end of the budget period each time the present month expires so that a twelve-month budget is available at all times. TrueFalse
Answers (1)
Franchise fees should be recognized 1. on the date the contract was signed. 2. when performance obligations are satisfied. 3. on the date the franchise is opened for business. 4. on the date the franchise fee is paid to franchisor.
Answers (1)
Which concept refers to a state of normlessness that is kept in check by group membership?
Answers (1)
What are the risks of foreign outsourcing?
Answers (1)
A headline states: "Real GDP falls again as the economy slumps." This condition is most likely to produce what type of unemployment? A. Structural. B. Cyclical. C. Frictional. D. Natural.
Answers (1)
New Questions in Business
A (n) is the issuer's written promise to pay an amount equaling the par value. The par value is paid at a specified future date. Most often, the issuer is required to make semiannual interest payments.
Answers (1)
The primary goal of the Consumer Financial Protection Bureau is: A To monitor your credit report and ensure your identity and other sensitive data has not been compromised. B To protect against abusive or deceptive debt collection purposes.
Answers (1)
Jake Skinner purchases a big screen TV on credit and will repay the loan with one payment at the end of 90 days. What type of credit did Jake use?
Answers (1)
Which most likely results from producers engaging in specialization? Producers reduce their costs. Producers increase their market share. Producers decrease the materials needed for production. Producers always offer more competitive pricing.
Answers (1)
The workers at State Hospital, a public sector employer, and Acme Inc, a private employer, are subject to speech censorship and arbitrary job termination. Constitutional issues are present only for the State Hospital workers. TrueFalse
Answers (1)
Home » Business » A company uses a process cost accounting system and the FIFO inventory valuation method. Its Assembly Department's beginning inventory consisted of 50,000 units, three-fourths complete with respect to direct labor and overhead.
Sign Up Forgot Password?