Equivalent Units of Activity, Cost per Equivalent Unit, Returns
Not what you're looking for?
Scrooge and Zilch, a public accounting firm in London, is engaged in the preparation of income tax returns for individuals. The firm uses the weighted-average method of process costing for internal reporting. The following information pertains to February. (£ denotes the British monetary unit, pounds sterling.)*
Returns in process, February 1:
(25% complete) 200
Returns started in February 825
Returns in process, February 28:
(80% complete) 125
Returns in process, February 1:
Labor £ 6,000
Overhead 2,500
Labor, February (4,000 hours) 89,000
Overhead, February 45,000
* Although the euro is used in most European markets, day-to-day business in the United Kingdom continues to be conducted in pounds sterling.
Required:
1. Compute the following amounts for labor and for overhead:
a. Equivalent units of activity.
Total Equivalent
units of activity
Labor
Overhead
b. Cost per equivalent unit.
Total Equivalent
units of activity
Labor £
Overhead £
Total £
2. Compute the cost of returns in process as of February 28.
Cost of returns £.
Purchase this Solution
Solution Summary
The solution determines the equivalent units of activity, cost per equivalent unit and returns.
Purchase this Solution
Free BrainMass Quizzes
Operations Management
This quiz tests a student's knowledge about Operations Management
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Basics of corporate finance
These questions will test you on your knowledge of finance.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)