Falrfax Company uses weighted-average process costing to account for its product
ID: 2596271 • Letter: F
Question
Falrfax Company uses weighted-average process costing to account for its production costs. Direct labor is added evenly throughout the process. Direct materials are added at the beginning of the process. During September, the company transferred 735.000 units of product to finished goods. At the end of September the goods in process inventory consists of 207,000 units that are 90% complete with respect to labor Beginning Inventory had $244,920 of direct materials and $69,098 of direct labor cost. The direct labor cost added in September is $1,312.852, and the direct materials cost added is $1.639,080. value: 10.00 points Required: 1(a)Determine the equivalent units of production with respect to direct labor Equivalent units 921300 1(b) Determine the equivalent units of production with respect to direct materials Equivalent units 942000
Explanation / Answer
EQUIVALENT UNITS WITH RESPECT TO DIRECT MATERIALS = 942000
EQUIVALENT UNITS WITH RESPECT TO DIRECT LABOUR = 735000 + 90% 207000 = 921300
B) CHARGE SHOULD BE ON COST OCCUPIED BY AREA
1000 + 1800 = 2800
$64000/2800 X 1000 = $22857 FOR 1ST FLOOR
$64000/2800 X 1800 = $41143 FOR 2ND FLOOR
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