not sure if the answers I have filled in are correct or no.. (Appendix 6A) First
ID: 2436750 • Letter: N
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not sure if the answers I have filled in are correct or no..
(Appendix 6A) First-In, First-Out Method Benson Pharmaceuticals uses a process-costing system to compute the unit c counter cold remedies that it produces. It has three departments: mixing, encapsulating, and bottling. In mixing, the ingredients for the cold capsules are materials assumed to be uniformly added throughout the process). The mix is transferred out in gallon containers. The encapsulating department takes the powdered mix and places it in capsules (which are necessarily added at the beginning of the process). One gallon of powdered mix converts into 1,500 capsules. After the capsules are filled and polished, they are transferred to bottling, where they are placed in bottles that are then affixed with a safety seal, lid, and label. Each bottle receives 50 capsules osts of the overthe measured, sifted, and blended (with During March, the following results are available for the first two departments: Mixing Encapsulating Beginning inventories: Physical units 10 gallons 4,000 Costs: Materials Labor Overhead Transferred in $252 $32 $282 $20 $140 Current production Transferred out 140 gallons 208,000 Ending inventory 20 gallons 6,000 Costs: revinLUsExplanation / Answer
Solution:
Benson Pharmaceutical Mixing Department Computation of Equivalent unit (FIFO) Particulars Physical units Material Conversion (Labor +Overhead) Units to be accounted for: Beginning WIP Inventory 10 Units started this period 150 Total unit to be accounted for 160 Units Accounted for: Units completed and transferred out From beginning inventoryMaterial - 60%
Conversion - 60% 10 6 6 Started and completed currently 130 130 130 Units in ending WIP
Material - 50%
Conversion - 50% 20 10 10 Total units accounted for 160 146 146
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