Originally Posted by morgaine300
Unfortunately there is too much missing information, and also incorrect calculations, making it difficult to follow the rest of the work. First, it doesn't say if it's FIFO or average. It looks like you're attempting to do average, but it's a bad idea to assume someone knew how to do it correctly, and since the numbers are incorrect, it's just hard to say. It doesn't give a completed percent for beginning balances, but that may also be because it's supposed to be average. If this is the way the numbers are presented in the problem, I have to say I find it confusing.
Now, you got off right from the start in your figuring of the units to be accounted for, which is messing up everything else. You do not add the units completed to beginning inventory, for the simple reason that the units completed includes beginning inventory. You have 80,000 completed and 12,000 in ending inventory. How does beginning inventory count into that? If they weren't completed, are they in ending inventory? They have to be somewhere. They're in the completed number. So you actually have 92,000 units to be accounted for. (Which also means 87,000 units were started this month.)
I also don't know what that overhead number is supposed to be. Since I don't see information for how to apply overhead, I could assume that is the applied overhead. (But again, there's that assumption I don't like to make.) Since overhead costs and overhead applied are two different things, you need to specify. Makes it really difficult when little details like that are left off.
Because the numbers at the beginning are off, I did not take them and carry them through the rest of the work. You need to get those corrected first.
