The cost of energy consumed in producing good units in the canning department of mandarin orange processing company was $10,790 and $5,170 for march and april, respectively. the number of equivalent units produced in march and april was 83,000 and 47,000 liters respectively. what is the cost of energy for the two months?

$ 0

Explanation:

The cost of energy for March and April is zero.

Explanation:

The expenses used to produce goods should be included in the cost of production of those products, they are capitalized as part of the stocks. Therefore, it is not included as an expense for the period, as, in some way, the company expects to "consume" ( sell/realize ) them in following periods.

Then, in the period when the products are sold, the company recognizes the Cost of Goods Sold ( COGS ):

Dr  COGS     ( Cost )

Cr  Stocks   ( Asset )

this conflict is person vs. society

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