Chinook Manufacturing uses a process cost system and the FIFO cost flow assumpti

Question

Chinook Manufacturing uses a process cost system and the FIFO cost flow assumption. Production begins in the Crafting Department where materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. O the beginning work in process inventory consisted of and had a cost of $266,000, following occurred n November 1 which were 60%. complete $140,000 of which were materials costs. During November, the Materials added Conversion costs incurred Units completed and transferred out in November Units in ending work in process November 30 (20% complete)25,000 $315,000 $63,000 40,000 Instructions Answer the following questions and show the computations that support your answers: (a) What are the units to be accounted for? b) What are the equivalent units of production for materials and conversion costs in the Crafting Department for the month of November? (c) What are the costs per equivalent unit for materials and conversion? (d) What are the costs assigne e) What are the costs assigned to units completed and transferred out during November?

Explanation / Answer

UNITS TO ACCOUNT FOR: Beginning Work in Process units 10,000 Add: Units Started in Process 55,000 Total Units to account for: 65,000 UNITS TO BE ACCOUNTED FOR: Units completed from Beginning WIP 10000 Units started and completed 30,000 Ending Work in Process 25,000 Total Units to be accounted for: 65,000 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units completed from Beg. WIP 0% 0 40% 4,000 Units started and completed 100% 30,000 100% 30,000 Ending Work in Process 100% 25,000 20% 5,000 Total Equivalent units 55,000 39,000 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 315,000 63,000 Equivalent Units 55,000 39,000 Cost per Equivalent unit 5.73 1.61 TOTAL COST ACCOUNTED FOR: Units Completed from Beginning WIP (10000 units) Equivalent unit Cost per EU Total Cost Beginning Cost 266000 Material 0 5.73 0 Conversion Cost 4,000 1.61 6440 Cost of units completed from Beg WIP 272440 Units started and Transferred out (30,000 units) Equivalent unit Cost per EU Total Cost Material 30,000 5.73 171900 Conversion Cost 30,000 1.61 48300 Total Cost of Units completed and transferred out: 220200 Ending Work in process (25000 units) Equivalent unit Cost per EU Total Cost Material 25,000 5.73 143250 Conversison Cost 5,000 1.61 8050 Total cost of Ending Work in process: 151,300 Req a: Units to be accounts for: 65,000 units Req b: Equivalent units: Material: 55,000 units Conversion: 39000 units Req c: Cost per equivalent unit: Material: $ 5.73 per unit Conversion : $1.61 per unit Req d: Ending Work in process: $ 151,300 Req E: Units completed and transferred out (272440+220200) = $492,640

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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