Tico Company uses a standard FIFO process costing system to account for its tortilla manufacturing process. The
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Direct material—ingredients $0.35
Direct material—package 0.05
Direct labor 0.07
Overhead 0.13
Total cost $0.60
On June 1, the company had 7,200 individual tortillas in process; these were 100 percent complete as to ingredients, 0 percent complete as to the packaging, and 30 percent complete as to labor and overhead. One hundred forty four thousand tortillas were started during June and 147,960 were finished. The ending inventory was 100 percent complete as to ingredients, 0 percent complete as to the packaging, and 60 percent complete as to labor and overhead.
a. What were the equivalent units of production for June?
b. What was the cost of the packages transferred to Finished Goods Inventory during June?
c. What was the cost of the ending Work in Process Inventory for June?
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
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