Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

The following is information about the Painting Department in the Richardson Fac

ID: 2351512 • Letter: T

Question

The following is information about the Painting Department in the Richardson Factory for the month of June. Richardson Factory uses the FIFO method of inventory costing.
Beginning goods in process inventory:



Physical units

5,000



% complete for materials

70%



% complete for labour and overhead

25%



Materials cost from May

$7,350



Labour and overhead cost from May

$3,125



Product started and completed:





Physical units

40,000

Ending goods in process inventory:





Physical units

4,000



% complete for materials

40%



% complete for labour and overhead

10%

Manufacturing costs for June:





Materials

$96,975



Labour and overhead

$79,470

compute equivalent units for direct materials,direct labor and overhead for june.

Explanation / Answer

Equivalent units of materials added to the beginning inventory = (100% - 70%) ? 5,000 physical units = 1,500 equivalent units of materials Equivalent units of labour and overhead added to the beginning inventory = (100% - 25%) ? 5,000 physical units = 3,750 equivalent units of labour and overhead