East Bay Fisheries Inc. processes king salmon for various distributors. Two departments are involved processing and
Question:
East Bay Fisheries Inc. processes king salmon for various distributors. Two departments are involved — processing and packaging. Data relating to tons of king salmon processed in the processing department during June 2016 are provided below:
Tons of King Salmon | Percent Completed | ||
Materials | Conversion | ||
Work-in-process inventory —June 1 | 1,500 | 90 | 80 |
Work-in-process inventory —June 30 | 2,800 | 60 | 40 |
Started processing during June | 7,800 |
Total equivalent units for conversion under the FIFO method are calculated to be:
6,560 equivalent units. | ||
8,180 equivalent units. | ||
6,420 equivalent units. | ||
7,140 equivalent units. | ||
7,320 equivalent units |
n a given process costing system, the equivalent units are computed using the weighted-average method. With respect to conversion costs, the percentage of completion for the current period is necessary for the calculation of the:
Beginning Work-In-Process Inventory | Ending Work-In-Process Inventory | |
A) | Yes | Yes |
B) | Yes | No |
C) | No | Yes |
D) | No | No |
Option A | ||
Option B | ||
Option C | ||
Option D |
Cost Management A Strategic Emphasis
ISBN: 978-0078025532
6th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins