Required information The following information applies to the questions displaye

Question

Required information The following information applies to the questions displayed below During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 84,000 were in process in the production department at the beginning of April and 336,000 were started and completed in April. April's beginning inventory units were 80% complete with respect to materials and 20% complete with respect to conversion. At the end of April, 106,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion. The production department had $1,452,832 of direct materials and $1,035,300 of conversion costs charged to it during April. Also, its beginning inventory of $365,638 consists of $339,208 of direct materials cost and $26,430 of conversion costs. Using the FIFO method, prepare the direct materials cost and the conversion cost per equivalent unit and assign April's costs to the department's output. (Round "Cost per EUP" to 2 decimal places.)

Explanation / Answer

Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units completed from Beg. WIP 20% 16,800 80% 67,200 Units started and completed 100% 336,000 100% 336,000 Ending Work in Process 80% 84,800 30% 31,800 Total Equivalent units 504,800 435,000 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 1,452,832 1,035,300 Equivalent Units 437,600 435,000 Cost per Equivalent unit 3.32 2.38 Total cost to Account for: beginning cost of WIP 365638 Current material cost 1452832 Current conversion cost 1035300 Total cost to Account for: 2853770 Total cost Accounted for: 2,853,770 Difference 0 TOTAL COST ACCOUNTED FOR: Units Completed from Beginning WIP (84000 units) Equivalent unit Cost per EU Total Cost Beginning Cost 365638 Material 16,800 3.32 55776 Conversion Cost 67,200 2.38 159936 Cost of units completed from Beg WIP 581350 Units started and Transferred out (336000 units) Equivalent unit Cost per EU Total Cost Material 336,000 3.32 1115520 Conversion Cost 336,000 2.38 799680 Total Cost of Units completed and transferred out: 1915200 Ending Work in process (106,000 units) Equivalent unit Cost per EU Total Cost Material 84,800 3.32 281536 Conversison Cost 31,800 2.38 75684 Total cost of Ending Work in process: 357,220 Total cost assigned 2,853,770

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