2) Chapter 6 The Roberto Company had computed the flow of units for Department B
ID: 2515597 • Letter: 2
Question
2) Chapter 6
The Roberto Company had computed the flow of units for Department B for the month of May as follows:
Work in process, May 1:
10,000
Transferred from Department A during May
39,000
Units to be accounted for
49,000
?
Beginning
work in process
Added during the current month
Materials
$ -0-
$235,750
Labor
12,660
166,320
Factory overhead
11,310
150,480
Total
$23,970
$552,550
Materials are added at the end of the process. There were 8,000 units of work in process at May 31. The work in process at May 1 was 30 percent complete as to conversion costs and the work in process at May 31 was 20 percent complete as to conversion costs. What was the cost of the goods transferred out and in ending work in process using the FIFO method? (Ignore transferred-in costs).
Work in process, May 1:
10,000
Transferred from Department A during May
39,000
Units to be accounted for
49,000
Explanation / Answer
Solution :
Roberto Company Department B Computation of Equivalent unit (FIFO) Particulars Physical units Material Conversion Units to be accounted for: Beginning WIP Inventory 10000 Units started this period 39000 Total unit to be accounted for 49000 Units Accounted for: Units completed and transferred out From beginning inventoryMaterial - 100%
Conversion - 70% 10000 10000 7000 Started and completed currently 31000 31000 31000 Units in ending WIP
Material - 0%
Conversion - 20% 8000 0 1600 Total units accounted for 49000 41000 39600
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