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Flow of Production Physical Units Direct Materials Conversion BB WIP Started in

ID: 2461107 • Letter: F

Question

Flow of Production Physical Units Direct Materials Conversion BB WIP Started in current period Completed & Trsfr-OUT From BB WIP Started & Completed EB WIP Equivalent Units From BB WIP Total Costs DM Ccost Conversion Cost Costs added in current period Cost per equiv unit Assignment of cost From BB WIP Cost added to BB WIP Total BB WIP Started Completed Total cost of compl & Trans out EB WIP Problem 7 (5 Points) Production the first stage a twostage manufacturing process for Sall Company, a restoration data for of - specialist, are as follows : Units BB WIP 5000 Units Direct Materials (75% completel Conversion (40% complete) Units Started during period |31000 Units Costs Incurred during period Direct Materials Conversion EB WIP 4500 Units Direct Materials (80% Complete) Conversion (60% Complete ) Costs $804 $2372 | $5016 | $29946 Required: Prepare the five-step production Cost Report for Sall Inc. using the FIFO process costing method, and compute the cost of good completed and transferred out and the cost of the ending WIP inventory for the current period.

Explanation / Answer

Beginning WIP

5,000

Direct materials

conversion

Started in current period

31,000

Units to be accounted

36,000

Completed and transferred

From Beginning WIP

5,000

Started and completed

26,500

Ending WIP

4,500

Units accounted for

36,000

Equivalent units

units

Materials

conversion

Beginning

5,000

1,250 (25%)

3,000(60%)

Started and completed

26,500

26,500

26,500

Ending WIP

4,500

3,600 (80%)

2,700 (60%)

Total units

36,000

31,350

32,200

Total cost

Direct materials

conversion

Beginning

$3,176

804

2,372

Cost added

34,962

5,016

29,946

Total cost

38,138

5,820

32,318

Cost per Equivalent units

.185645933

1.003664596

Cost of goods manufactured and transferred

From beginning inventory

$0

Current cost to complete

3,243

1250*.185645933+

3000*1.003664596

Units started and completed

31,517

26,500* .185645933

26,500*1.003664596

Cost of goods manufactured

34,760

Ending inventory

3,378

3,600*185645933

2700*1.003664596

Total cost

$38,138

Beginning WIP

5,000

Direct materials

conversion

Started in current period

31,000

Units to be accounted

36,000

Completed and transferred

From Beginning WIP

5,000

Started and completed

26,500

Ending WIP

4,500

Units accounted for

36,000

Equivalent units

units

Materials

conversion

Beginning

5,000

1,250 (25%)

3,000(60%)

Started and completed

26,500

26,500

26,500

Ending WIP

4,500

3,600 (80%)

2,700 (60%)

Total units

36,000

31,350

32,200

Total cost

Direct materials

conversion

Beginning

$3,176

804

2,372

Cost added

34,962

5,016

29,946

Total cost

38,138

5,820

32,318

Cost per Equivalent units

.185645933

1.003664596

Cost of goods manufactured and transferred

From beginning inventory

$0

Current cost to complete

3,243

1250*.185645933+

3000*1.003664596

Units started and completed

31,517

26,500* .185645933

26,500*1.003664596

Cost of goods manufactured

34,760

Ending inventory

3,378

3,600*185645933

2700*1.003664596

Total cost

$38,138