Question

The Cutting Department of Lasso Company has the following production and cost data for August.ProductionCosts1.Started and completed 10,000 units.Beginning work in process$ -0-2.Started 2,000 units that are 40%Materials45 000Completed at August 31.Labour13 600Manufacturing Overhead16 100Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process.Lasso Company used the FIFO method to compute equivalent units.Instructions(a)Determine the equivalent units of production for (1) materials and (2) conversion costs.(b)Compute unit costs and show the assignment of manufacturing costs to units transferred out and in work in process

Answer 1

Answer:

The Cutting Department of Lasso Company has the following production and cost data for August.ProductionCosts1.Started and completed 10,000 units.Beginning work in process$ -0-2.Started 2,000 units that are 40%Materials45 000Completed at August 31.Labour13 600Manufacturing Overhead16 100Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process.Lasso Company used the FIFO method to compute equivalent units.Instructions(a)Determine the equivalent units of production for (1) materials and (2) conversion costs.(b)Compute unit costs and show the assignment of manufacturing costs to units transferred out and in work in process