Using the FIFI method in its process costing. The following data concerning the
ID: 2421542 • Letter: U
Question
Using the FIFI method in its process costing. The following data concerning the mixing departmemnt for the month of august" work in process, august 1 is $31,734 for materials and conversion is $30,320, cost added to the misxing department during august is $91,332 for materials and conversion is $81,864, equivalent units of production for august are 7,740 for materials and 7,580 for conversion. what are the cost per equivalent unit for materials and the cost per eqivalent for conversion for the department using the FIFI method?
Explanation / Answer
Total costs incurred for materials during August = $ 31,734 + $ 91,332 = $ 123,066 for 7,740 units
Hence, the equivalent cost per unit for materials = $ 123,066 / 7,740 = $ 15.90 per unit
Total costs incurred for conversion during August = $ 30,320 + $ 81,864 = $ 122,184 for 7,580 units
Hence, the equivalent cost per unit for conversion = $ 122,184 / 7,580 = $ 16.12 per unit
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.