Alvis Construction Supply Company has a department that manufactures wood trusses ( wood frames used in the
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Question:
Alvis Construction Supply Company has a department that manufactures wood trusses wood frames used in the construction industry The following information is for the production of these trusses for the month of February:
Workinprocess inventory, February trusses
Direct materials: complete $
Conversion: complete $
Units started during February trusses
Units completed during February and transferred out trusses
Workinprocess inventory, February
Direct materials: complete
Conversion: complete
Costs incurred during February
Direct materials $
Conversion $
Required
Using the FIFO method, calculate the following:
a Costs per equivalent unit. Round your answers to decimal places.
b Cost of goods completed and transferred out. Do no round your intermediate calculations. Round your final answer to the nearest whole dollar.
c Costs remaining in the WorkinProcess Inventory account. Do no round your intermediate calculations. Round your final answer to the nearest whole dollar.
Assume that you are the companys controller. The production departments February equivalent unit cost is higher than expected. If the manager of the first department asks you to do him a favor by increasing the ending inventory completion percentage from to to lower the unit costs, how much would unit cost be affected by this request? Round your answer to decimal places.
Related Book For
Cost Management A Strategic Emphasis
ISBN: 9781259917028
8th Edition
Authors: Edward Blocher, David F. Stout, Paul Juras, Steven Smith
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