Cost Information
During October, McCourt Associates incurred total production costs of $117,250 for copyediting manuscripts and had the following equivalent units schedule:
Units completed 335
Units in EWIP × Fraction complete: 25 × 0.6 15
Equivalent units 350
Required:
1. Calculate the cost of copyediting one manuscript for October.
2. Assign costs to manuscripts completed and to EWIP and then do a cost reconciliation.
3. What if the costs assigned to units completed and EWIP total were calculated using a unit cost of $365? Calculate the total costs assigned.
What is the discrepancy between the costs assigned and the costs to account for?