Data concerning a recent period’s activity in the Assembly Department, the first
ID: 2480763 • Letter: D
Question
Data concerning a recent period’s activity in the Assembly Department, the first processing department in a company that uses process costing, appear below:
A total of 26,900 units were completed and transferred to the next processing department during the period. Beginning work in process inventory consisted of 2,300 units and`ending work in process inventory consisted of 2,000 units.
Using the FIFO method, compute the cost of the units transferred to the next department during the period and the cost of ending work in process inventory.
Cost of units transferred to the next department: Materials: ? Conversion: ? total : ?
Cost of ending work in progress Inventory : Materials: ? Conversion: ? total: ?
PLEASE ANSWER WHERE THE QUESTION MARKS ARE, THANK YOU.
Data concerning a recent period’s activity in the Assembly Department, the first processing department in a company that uses process costing, appear below:
Explanation / Answer
Answer:
Working Note:
Units Produced= Units transffered + Closing Stock -Openng Stock = 26900+2000-2300 =26600
So Using FIFO units transffered is 2300 unit of opening stock and Remaining units from current period production= 26900-2300 = 24600.
Cost of units transferred to the next department Using FIFO Material Conversion Total Cost of work in process inventory at the beginning of the period 3800 630 4430 Cost of completing Beginning Work in process Inventory= Equivalent units required to complete * Cost per equivalent units 1705 1024 2729 Cost of Remaining Units Produced and transffered.
(=24600 * Cost Per Equivalent Unit) 76260 19680 95940 Total Cost of units transferred to the next department: 81765 21334 103099 Cost of ending work in progress Inventory Material Conversion Total Cost of ending work in progress Inventory
=Cost Equivalent units for the period * 2000 6200 1600 7800
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