Equivalent units
Not what you're looking for?
Please, if you have done this one before, either: (a) completely re-word or (b) don't do this. Thank you!
Mary Mahr has recently been promoted to production manager, and so she has just started to receive various managerial reports. One of the reports she has received is the production cost report that you prepared. It showed that her department had 1,000 equivalent units in ending inventory. Her department has had a history of not keeping enough inventory on hand to meet demand. She has come to you, very angry, and wants to know why you credited her with only 1,000 units when she knows she had at least twice that many on hand.
INSTRUCTIONS:
Explain to her why her production cost report showed only 1,000 equvalent units in ending inventory. Write and invormal memo. Be kind and explain very clearly why she is mistaken.
Purchase this Solution
Solution Summary
This discusses the steps to compute the Equivalent units
Solution Preview
Nature of production process
Process costing has got continuos production process, thus inventory is usually produced in a continuous process. Hence it likely that goods will be in various stages of production within each department at the end of each accounting period. How are the costs incurred to be allocated between work in process versus finished goods?
EQUIVALENT UNITS: To deal with ...
Purchase this Solution
Free BrainMass Quizzes
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.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.