Mullins Corporation uses the FiFO method in its process costing system. Data con

Question

Mullins Corporation uses the FiFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below Beginning work in process inventorys Unite in beginning work in process inventory Materials costs Conversion costs Percent complete with respect to materials Percent complete with respect to conversion Units started into production during the month Units tranaferred to the next department during the month Materials costs added during the month Conversion costs added during the month Ending work in process Anventorys 750 s 11,600 s 22,250 75% 658 8,700 7,900 5160,300 $349,500 Units in ending work in process inventory Percent complete with respect to material Percent complete with respect to conversion 1,550 658 50% The cost of a completed unit transferred out of the department is closest to: (Round equivalent units to the nearest whole number and round all other Intermediate calculations to 2 decimal places)

Explanation / Answer

Solution:

Hence cost of completed unit transferred out of the departmetn is closest to $491,190.

Mullins Corporation First Processing Department Computation of Equivalent unit (FIFO) Particulars Physical units Material Conversion Units to be accounted for: Beginning WIP Inventory 750 Units started this period 8700 Total unit to be accounted for 9450 Units Accounted for: Units completed and transferred out From beginning inventory
Material - 25%
Conversion - 35% 750 187.5 262.5 Started and completed currently 7150 7150 7150 Units in ending WIP
Material - 65%
Conversion - 50% 1550 1007.5 775 Total units accounted for 9450 8345 8188

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