Aaron Company has a process costing system. All materials are introduced when co
ID: 2469233 • Letter: A
Question
Aaron Company has a process costing system. All materials are introduced when conversion costs reach 50 percent. The following information is available for physical units during March. Work in process, March 1 (70% complete as to conversion costs) 169,000 Units started in March 638,000 Units transferred to Finishing Department in March 668,000 Work in process, March 31 (30% complete as to conversion costs) 139,000
Required: (a) Compute the equivalent units for materials costs and for conversion costs using the weighted-average method.
(b)Compute the equivalent units for materials costs and for conversion costs using the FIFO method
(b)Compute the equivalent units for materials costs and for conversion costs using the FIFO method
Explanation / Answer
Weighted Average Method Statement of Equivalent production Particulars Direct Materials %completion Equivalent mat Conversion %completion Equivalent Conv Opening WIP 169,000.00 100% 169,000.00 169,000.00 100% 169,000.00 Units started and completed(638,000-139,000) 499,000.00 100% 499,000.00 499,000.00 100% 499,000.00 Closing WIP 139,000.00 0% - 139,000.00 30% 41,700.00 Equivalent Units 668,000.00 709,700.00 FIFO Method Statement of Equivalent production Particulars Direct Materials %completion Equivalent mat Conversion %completion Equivalent Conv Opening WIP 169,000.00 0% - 169,000.00 30% 50,700.00 Units started and completed(638,000-139,000) 499,000.00 100% 499,000.00 499,000.00 100% 499,000.00 Closing WIP 139,000.00 0% - 139,000.00 30% 41,700.00 Equivalent Units 499,000.00 591,400.00
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