Question 6: (3 points) (FIFO Supplement) The following data relate tothe Mixing

Question

Question 6: (3 points)
(FIFO Supplement) The following data relate tothe Mixing Department of Dillard Company for a recent month:

Units Percent Complete with Respect toProcessing Beginning work in process inventory 10,000 60% Units started into production 48,000 Units completed and transferred out 52,000 Ending work in process inventory 6,000 100%

All materials are added at the beginning of the mixingprocess.

(FIFO Supplement) Assuming that DillardCompany uses the FIFO method, the equivalent units for materialswould be:
52,500 43,000 49,500 48,000 (FIFO Supplement) The following data relate tothe Mixing Department of Dillard Company for a recent month:

Units Percent Complete with Respect toProcessing Beginning work in process inventory 10,000 60% Units started into production 48,000 Units completed and transferred out 52,000 Ending work in process inventory 6,000 100%

All materials are added at the beginning of the mixingprocess.

(FIFO Supplement) Assuming that DillardCompany uses the FIFO method, the equivalent units for materialswould be:
52,500 43,000 49,500 48,000 (FIFO Supplement) The following data relate tothe Mixing Department of Dillard Company for a recent month: Units Percent Complete with Respect toProcessing Beginning work in process inventory 10,000 60% Units started into production 48,000 Units completed and transferred out 52,000 Ending work in process inventory 6,000 100%

All materials are added at the beginning of the mixingprocess.
(FIFO Supplement) Assuming that DillardCompany uses the FIFO method, the equivalent units for materialswould be: 52,500 43,000 49,500 48,000 (FIFO Supplement) The following data relate tothe Mixing Department of Dillard Company for a recent month:

Units Percent Complete with Respect toProcessing Beginning work in process inventory 10,000 60% Units started into production 48,000 Units completed and transferred out 52,000 Ending work in process inventory 6,000 100%

All materials are added at the beginning of the mixingprocess.

(FIFO Supplement) Assuming that DillardCompany uses the FIFO method, the equivalent units for materialswould be:
52,500 43,000 49,500 48,000

Explanation / Answer

                                                Cost of Production Report - Mixing Department                                                                                                                                                                                      EquivalentUnits               Units                                                       Whole Units     DirectMaterial     Conversion Units to be assigned cost:       Beginning inventory inprocess 60%completed  10,000              0                            4,000
                                                                                                                                         (=10,000*40%)       Started andcompleted                                     42,000               42,000                    48,000                                                                     (=52,000-10,000)                                                                     (=52,000-10,000)       Transfered to finishedgoods                            52,000               42,000                    52,000 (We need to calculatetransfered to finished goods first, which is 52,000 given.
After that we calculate started and completed)       Ending inventory inprocess 100% completed    6,000                 6,000                     6,000
      Totalunits to be assignedcost                        58,000               48,000                    58,000 The answer is48,000

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