Using the data in SE4, SE5, SE7, and SE8 and assuming that Pearl Glaze uses the average
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In SE4, Pearl Glaze adds direct materials at the beginning of its production process and adds conversion costs uniformly throughout the process. Given the following information from Pearls records for July and using Steps 1 and 2 of the FIFO costing method, compute the equivalent units of production:
Units in beginning inventory ......... 3,000
Units started during the period ...... ... 17,000
Units partially completed in prior period .... .2,500
Percentage of completion of ending ....... 100% for direct materials;
work in process inventory .......... 70% for conversion costs
Percentage of completion of beginning ..... 100% for direct materials;
inventory in prior period ........... 40% for conversion costs
In SE5, Using the information from SE4 and the data that follow, compute the total cost per equivalent unit.
In SE7, Using the same data as in SE4 but Steps 1 and 2 of the average costing method, compute the equivalent units of production for the month.
In SE8, Using the average costing method and the information from SE4, SE5, and SE7, compute the total cost per equivalentunit.
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
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Related Book For
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
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