Question

Seacrest Company uses a process costing system. The company manufactures a product that is processed in two departments: A an

Costs: Transferred in 2 Direct materials $57,800 $37.950 Conversion costs $95 220 $128.100 Percentage completion: 40% Beginni

1(b) Using the FIFO method, calculate equivalent units for Department A. Department A Equivalent Unit Calculation Equivalent

1(C) Using the FIFO method, calculate unit cost for Department A. Note: Round to 3 decimal places. Unit cost $

10) Using the FIFO method, calculate the cost of EWP and cost of goods transferred out for Department A Note: Use the unit co

Department A Cost Reconciliation Score: 0/66 1 Costs to account for: 2 3 4 Total costs to account for 5 Costs accounted for:

2 CONCEPTUAL CONNECTION: (a) Prepare journal entries on Nov. 30 that show the flow of manufacturing costs for Department A. U

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Answer #1

1b. Equivalent units in beginning WIP = 40%*5000 = 2000 units

Units started and completed = 28000-5000 = 23000 units

Equivalent units in ending WIP = 2000*80% = 1600 units

Total equivalent units = 2000+23000+1600 = 26,600 units

1c. Total costs = 57800 + 95220 = $153,020

Cost per unit = $153,020/26600 units = $5.75

1d. cost of EWIP = $5.75*1600 units = $9200

cost of goods transferred out = 28000*5.75 = $161,000

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