The polishing department of Burgeo Tools operates a first-in, first-out process-costing system in which all direct materials
Question:
The polishing department of Burgeo Tools operates a first-in, first-out process-costing system in which all direct materials are added when production in the department is 40 percent complete.
In contrast, conversion costs are incurred evenly during processing. The following information pertains to the polishing department's March production activities:
Required:
1. Prepare a physical flow analysis for the polishing department for March.
2. Calculate equivalent units of production for the polishing department for March.
3. Calculate the unit cost for the polishing department for March.
4. Calculate the cost of units transferred out and the cost of EWIP inventory.
5. Prepare a cost reconciliation for the polishing department for March.
6. Kimberleigh Williams, the manager of the polishing department, is considering changing from a first-in, first-out system to a weighted average system. To help in her analysis, she has asked for your opinion. Prepare a brief memo out- lining the advantages of a weighted average costing system.
Step by Step Answer:
Cornerstones of Managerial Accounting
ISBN: 978-0176530884
2nd Canadian edition
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman