Prentice Hall's Federal Taxation 2014 Comprehensive C13-49
Assume the same facts as in Problem C:13-48 and that before Yuji's death in 2013 his wife already owned property valued at $300,000. Assume that each asset owned by each spouse increased 8% in value by the surviving spouse's date of death in 2013 and that Yuji's executor elected to claim the maximum marital deduction possible. Assume there were no state death taxes. From a tax standpoint, was the executor's strategy of electing the marital deduction on the QTIP trust a wise decision? Support your answer with computation
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Cost of Prduction report
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Equivalent Units
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Flow Of Units
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Physical Units
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Direct Material
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Direct Labour
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Units to be accounted for
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Beginning work in process inventory
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4500
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Units started this period
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41000
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Total u nits to be accounted for
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45500
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Units accounnted for:
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Completed and transferred out (b)
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41900
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41900
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41900
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Ending work in progress inventory©
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3600
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3600
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2520
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Total units to be accounted for (f)
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45500
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45500
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44420
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Flow of Cost
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Cost in the begnning work in progress inventory
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49590
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40590
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9000
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Begiining and cost added to process
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462850
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360800
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102050
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Total Cost to be accounted for (e)
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512440
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401390
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111050
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Cost per equivalent unit (a) (e/f)
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11.32
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8.82
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2.50
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Cost accounted for
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ans b
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ans b
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Cost assigned to units transferred out (a*b)
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474382
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369632
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104750
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Cost in ending work in progress inventory (a*c)
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38058
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31758
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6300
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Total Cost accounted for
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512440.00
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401390.00
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111050.00
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Cost of units started and completed
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(41900-4500)*11.32
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423368
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I have used weighted average method if answer is not this let me know than I will use FIFO method