Hayek Corporation uses the FIFO method in its process costing. The following dat

Question

Hayek Corporation uses the FIFO method in its process costing. The following data concern the company's Mixing Department for the month of August.                          

                                                                   Materials           Conversion

Work in process, August 1                         $31,734             $30,320

Cost added to production in Mixing

Department during August                       $91,332             $81,864

Equivalent units of production for August       7,740                 7,580

What are the cost per equivalent unit for materials and the cost per equivalent for conversion for the Mixing Department for August using FIFO method?

Explanation / Answer

Total Production cost Direct materials Conversion cost work in progress in the beginning $                     62,054.00 $           31,734.00 $          30,320.00 Cost added in current period $                   173,196.00 $           91,332.00 $          81,864.00 Total cost to account for $                   235,250.00 $         123,066.00 $        112,184.00 Cost added in current period $           91,332.00 $          81,864.00 Equivalent units of work done in current period $             7,740.00 $            7,580.00 Cost per equivalent unit of work done in current period $                   11.80 $                  10.80 for mixing department

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