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 Begirming work in process inventory: Uhits in beginning work in process inventory Materials costs Conversion costs Percent complete with respect to materials Percent complete with respect to conversion 1.200 $ 12.500 $ 22.700 75% 65% Uhits started into product ion dur ing the month Uhits transferred to the next department during the month Materials costs added during the month Conversion costs added durins the month 9,600 8.800 $169.300 $358,500 Ending work in process inventory: Uhits in ending work in process inventory Percent cceplete with respect to naterials Percent conplete with respect to conversion 2,000 65% 50% The cost of a completed unit transferred out of the department is closest to. (Round equivelent units to the neerest whole number and round all colculations to 2 decimal places.)

Explanation / Answer

Units to account for Equivalent units Beginning WIP 1200 Units started into prodn. 9600 Total Units to account for 10800 Units accounted for: Units trfd. To next dept.(FIFO) From: Beginning WIP 1200 300 420 Current Units started into prodn.(8800-1200) 7600 7600 7600 Total Units trfd. To next dept. 8800 7900 8020 Ending WIP 2000 1300 1000 Total Units to accounted for 10800 9200 9020 Cost of production Report Materials Conversion Total Costs to account for Beginning WIP 12500 22700 35200 Costs added 169300 358500 527800 Total costs to account for----1 181800 381200 563000 Equivalent units---------------2 9200 9020 Cost per Equivalent unit---1/2 19.7609 42.2616 62.0225 Costs accounted for Of: Beginning WIP 5928.26 17749.89 23678.15 Current Units started into prodn.(8800-1200) 150182.6 321188.47 471371.08 Total costs trfd. To next dept. 156110.87 338938.36 495049.23 Ending WIP 25689.13 42261.641 67950.77 Total costs accounted for 181800 381200 563000 From the above, Cost of a completed unit transferred out of the dept.= 495049.23/8800= 56.26 (ANSWER)

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