Cost Information During October, McCourt Associates incurred total production co
ID: 2438801 • Letter: C
Question
Cost Information During October, McCourt Associates incurred total production costs of $113,850 for copyediting manuscripts and had the following equivalent units schedule: Units completed units in EWIP x Fraction complete: 25 x 0.6 Equivalent units Required: 1. Calculate the cost of copyediting one manuscript for October. 330 15 345 per manuscript 2. Assign costs to manuscripts completed and to EWIP and then do a cost reconciliation. Manuscripts completed EWIP Total assigned 3. What if the costs assigned to units completed and EWIP total were calculated using a unit cost of $350? Calculate the total costs assigned. What is the discrepancy between the costs assigned and the costs to account for?Explanation / Answer
1 cost of copyediting one manuscript for October Total production costs $113,850 Equivalent units 345 Unit cost $330 (Total production cost/Equivalent uints) 2 costs to manuscripts completed and to EWIP Manuscripts Completed $108,900 ($330 x 330 units completed ) EWIP $4,950 ($330 x 330 EWIP ) Total Assigned $113,850 Reconciliation: The costs equal the costs to account for of $113,850 (i.e. total production 3 Manuscripts Completed $115,500 ($330 x 330 units completed ) EWIP $5,250 ($330 x 330 EWIP ) Total Assigned $120,750 Total Costs to Account for $113,850 Difference $6,900 The discrepancy is attributable to some type of error in calculating unit cost