Required information [The following information applies to the questions display

Question

Required information

[The following information applies to the questions displayed below.]

During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 81,000 were in process in the production department at the beginning of April and 324,000 were started and completed in April. April's beginning inventory units were 65% complete with respect to materials and 35% complete with respect to conversion. At the end of April, 103,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion.

Prepare the number of equivalent units with respect to both materials used and conversion costs in the production department for April using the FIFO method.

The production department had $1,434,675 of direct materials and $1,002,573 of conversion costs charged to it during April. Also, its beginning inventory of $287,867 consists of $222,485 of direct materials cost and $65,382 of conversion costs.

Using the FIFO method, prepare the direct materials cost and the conversion cost per equivalent unit and assign April's costs to the department’s output. (Round "Cost per EUP" to 2 decimal places.)
  

Equivalent Units of Production - FIFO Units % Materials EUP- Materials % Conversion EUP-Conversion Total units accounted for 100% Units in ending work in process 80% Equivalent units of production 0

Explanation / Answer

Equivalent Units: UNITS Material Cost Conversion % Completion Units % Completion Units Units completed from Beg. WIP 81000 35% 28,350 65% 52,650 Units started and completed 324000 100% 324,000 100% 324,000 Ending Work in Process 103000 80% 82,400 30% 30,900 Total Equivalent units 434,750 407,550 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 1,434,675 1,002,573 Equivalent Units 434,750 407,550 Cost per Equivalent unit 3.3 2.46 TOTAL COST TO ACCOUNT FOR: Cost of Beginning Inventory 287,867 Current cost added in the process     Material 1434675     Conversion 1002573 Total cost to account for: 2725115 Total cost accounted for 2725115 Differecnce due to rounding off 0 TOTAL COST ACCOUNTED FOR: Units Completed from Beginning WIP (81000 units) Equivalent unit Cost per EU Total Cost Beginning Cost 287867 Material 28,350 3.3 93555 Conversion Cost 52,650 2.46 129519 Cost of units completed from Beg WIP 510941 Units started and Transferred out (324000 units) Equivalent unit Cost per EU Total Cost Material 324,000 3.3 1069200 Conversion Cost 324,000 2.46 797040 Total Cost of Units started and completed: 1866240 Total cost of 405,000 units completed 2377181 Ending Work in process (103,000 units) Equivalent unit Cost per EU Total Cost Material 82,400 3.3 271920 Conversison Cost 30,900 2.46 76014 Total cost of Ending Work in process: 347934 Total cost assigned 2725115

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

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