Taxes R Us (TRU), an income tax preparation firm, uses the FIFO method of process costing...

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Taxes R Us (TRU), an income tax preparation firm, uses the FIFO method of process costing for its monthly reports. TRU has no

business accounting

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Answer 1

Answer #1

Solution 1:

Returns started and completed = 2550 - 580 = 1970

Number of equivalent units = beginning units*70% + started and completed*100% + Ending units*90%

= 290*70% + 1970*100%+ 580*90% = 2695

Solution 2:

Cost per Equivalent unit = Labor and overhead cost added / Equivalent units = $390775 / 2695 = $145 per unit

Solution 3:

Cost of completed tax returns = Beginning Costs + Cost to complete beginning units + cost of units started and completed

= $7250 + (290*70%*$145) + (1970*$145) = $322,335

Solution 4:

Cost of tax returns in process as of March 31 = 580*90%*$145 = $75,690

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Answer 2

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Taxes R Us (TRU), an income tax preparation firm, uses the FIFO method of process costing...

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