Question

Refer to the information from Problem 6.47.
Physical Units
Beginning WIP (25% complete) ....... 11,000
Started during January ........... 74, 0000
Total to account for ............ 85,000
Good units completed and transferred out during current period:
From beginning work in process ...... 11,000
Started and completed ........... 50,000
Spoiled units ............. 8,000
Ending WIP (75% complete) ....... 16,000
Total accounted for ........... 85,000
Costs
Beginning WIP:
Direct materials .......... $ 220,000
Conversion costs ......... 30,000
Total beginning WIP ........ 250,000
Costs added during current period:
Direct materials .......... 1,480,000
Conversion costs ........ 942,000
Costs to account for ....... $2,672,000

REQUIRED
A. Explain how a standard cost report would differ from a FIFO cost report.
B. Under what circumstances would a standard cost report be preferable to a FIFO cost report?
Explain your answer.



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  • CreatedJanuary 26, 2015
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