The sewing process used by Sunland Inc. began the year with an inventory of $3900 (Direct Materials
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- The sewing process used by Sunland Inc. began the year with an inventory of $3900 (Direct Materials were 100% complete). Using First-In, First-Out (FIFO), the company calculated the equivalent units of production for this year to be:
Direct Materials (DM) | Conversion Costs (CC) | |||
Units in Beginning Work-in-Progress (WIP) Inventory Completed This Period | 0 | 33 | ||
Units Started and Completed This Period | 780 | 780 | ||
Units in Ending WIP Inventory | 160 | 79 |
Sunland has calculated the cost per equivalent unit as follows: Direct Material (DM) $86 and Conversion Costs (CC) $40. How much cost should Sunland assign to the units completed and removed from WIP Inventory in the current year?
Related Book For
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
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