Data concerning a recent period\'s activity in the Assembly Department, the firs

Question

Data concerning a recent period's activity in the Assembly Department, the first processing department in a company that uses the FIFO method in its process costing, appear below Materials Conversion Cost of work in process inventory at the beginning of the period $3,200 740 Equivalent units in the ending work in process inventory Equivalent units required to complete the beginning work in process inventory Cost per equivalent unit for the period 350 280 1,130 $2.00 0.70 530 A total of 25,600 units were completed and transferred to the next processing department during the period. Beginning work in process inventory consisted of 2,900 units and ending work in process inventory consisted of 1,600 units Required: 1. Compute the Assembly Department's cost of ending work in process inventory for materials, conversion, and in total for the period 2. Compute the Assembly Department's cost of units transferred out to the next department for materials, conversion, and in total for the period. Total 1. Cost of ending work in process inventory 2. Cost of the units transferred to the next department

Explanation / Answer

Solution 1&2 :

Assembly Department Producton cost report - FIFO Particulars Total cost Material Conversion Cost Accounted for : Cost assigned to unit transferred out: Cost from beginning WIP Inventory $3,940 $3,200 $740 Current cost added to complete beginning WIP: Material (530*$2) $1,060 $1,060 Conversion (1130 * $0.70) $791 $791 Total Cost from beginning inventory $5,791 $4,260 $1,531 Current cost of unit started and completed: Material (22700*$2) $45,400 $45,400 Conversion (22700*$0.70) $15,890 $15,890 Total cost of unit started and completed $61,290 $45,400 $15,890 Total cost of unit transferred to the next department $67,081 $49,660 $17,421 Cost assigned to ending WIP: Material (350*$2) $700 $700 Conversion (280*$0.70) $196 $196 Cos of ending WIP inventory $896 $700 $196 Total cost accounted for $67,977 $50,360 $17,617

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