Raphael's Refining uses a weighted average process costing system. For a particular period, its opening inventory...
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Raphael's Refining uses a weighted average process costing system. For a particular period, its opening inventory consisted of 100 items (60 per cent complete as to conversion costs) whose costs were $1600 made up of material $300 and conversion cost $1300. During the month, 1000 items were started and 950 were completed. Ending inventory of WIP was one- third complete. There was no spoilage. Costs placed in process during the month were materials $1600 and conversion costs $13 700. Materials are added at the halfway point. i. What is the amount of cost that would be allocated to goods completed in the period? ii. What is the amount of cost that would be allocated to goods completed in the period if Raphael's Refining uses a FIFO process costing system? Raphael's Refining uses a weighted average process costing system. For a particular period, its opening inventory consisted of 100 items (60 per cent complete as to conversion costs) whose costs were $1600 made up of material $300 and conversion cost $1300. During the month, 1000 items were started and 950 were completed. Ending inventory of WIP was one- third complete. There was no spoilage. Costs placed in process during the month were materials $1600 and conversion costs $13 700. Materials are added at the halfway point. i. What is the amount of cost that would be allocated to goods completed in the period? ii. What is the amount of cost that would be allocated to goods completed in the period if Raphael's Refining uses a FIFO process costing system?
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Answer rating: 100% (QA)
Answer 1 Weighted average Method 16150 Answer 2 First in First out FIFO Method 16171 Material added when 50 unit completed Step for solution Step 1 Equivalent Units of production Physical units multip... View the full answer
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
Posted Date:
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