Direct materials are added at the end of the process. Conversion costs are added

Question

Direct materials are added at the end of the process. Conversion costs are added evenly during the process.

1.Calculate equivalent units of transferred-in costs, direct materials, and conversion costs.

2. Summarize the total costs to account for, and calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs.

3. Assign costs to units completed (and transferred out) and to units in ending work in process

Note - Use FIFO method. need to first calculate equivalant units of work done in the current period (for transferred-in costs, direct materials, and conversion costs) to complete beginining work in process, to start and complete new units, and to produce ending work in process.

FIFO method Physical units (tons) Transferred-in costs Direct Materials Conversion costs Work in process,beginning inventory (June 1) 60 $45,000 $0 24,000 Degree of completion, beginning work in process 100% 0% 50% transferred in during June 100 Completed and transferred out during June 120 work in process, ending inventory (june 30) 40 degree of completion, ending work in process 100% 0% 75% total costs added during june $114,000 $27,000 $62,400

Explanation / Answer

Equivalent units is as follows:

Costs:

Cost per equivalent units:

Particulars Tranferred in units Direct materials Conversion costs Opening workin progress 60 0 30 Add: Transferred in during the month 100 100 100 Add:Work in progress at the closing of the month 40 0 30 Equivalent units(A) 200 100 160

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.