Score: 0 of 1 pt 44 of 5 (0 complete)> E18A-31 (similar to) John\'s Frozen Pizza

Question

Score: 0 of 1 pt 44 of 5 (0 complete)> E18A-31 (similar to) John's Frozen Pizzas uses FIFO process costing Selected production and cost dala folow for April 2018 ?click the icon to view the production and cost data) Read the requirements. On March 31, the Prepping Department beginning Work-in-Process Inventory was 65% complete for materials and 60% complete for conversion costs. This means that for the beginning inventory conversion costs were added during April %ofthe materials and D%ofthe Data Table Prepping Department Units to account for 30,000 75,000 105,000 Beginning work-in-process, March 31 Started in April Total units to account for Units accounted for Complated and transferred out during Apri From beginning work in process inventory Started and completed during Apil 30,000 25,000 50,000 105,000 Ending work-in-process, April 30 Total units accounted for Print Done

Explanation / Answer

ANSWER

If in the Beginning 65% with respect to Materials and 60% with respect to Conversion Cost was complete then the balance will be transferred to Units started and completed in April.

Hence 35% with respect to Materials (100-65)% and 40% with respect to Conversion cost (100-60)% will be added to the Units started and completed in April.

This is a concept of process costing where the material is completed on part by part basis and the work of last year which is incompleted is transferred to current year. Hence, if some percentage of work regarding Material, Labour or Conversion is completed in the last year, then the balance work relating to same will be used in the current year for completing the stock in the current year.

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