During April, the production department of a process manufacturing system comple

Question

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, 79,000 were in process in the production department at the beginning of April and 316,000 were started and completed in April. April's beginning inventory units were 80% complete with respect to materials and 20% complete with respect to conversion. At the end of April, 101,000 additional units were in process in the production department and were 85% complete with respect to materials and 35% complete with respect to conversion.The production department had $1,336,480 of direct materials and $970,047 of conversion costs charged to it during April. Also, its beginning inventory of $270,083 consists of $250,325 of direct materials cost and $19,758 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 (EUP)- FIFO Method Units % Materials EUP- Materials % Conversion EUP-Conversion Units to complete beginning work in process 20% 80% Units started and completed 100% 100% Units in ending work in process 85% 35% Equivalent units of production 0 Cost per Equivalent Unit of Production Materials Conversion Total costs Costs Costs ÷ Equivalent units of production EUP 0 EUP 0 Cost per equivalent unit of production (rounded to 2 decimals) 0 0 Total Costs to Account for: Total costs to account for: $0.00 Total costs accounted for * Difference due to rounding cost/unit $0.00 Assignment of Costs to Output of Department Cost of 79,000 units from beginning inventory Beginning inventory EUP Cost per EUP Total cost Materials to complete Conversion to complete Total costs to complete Total cost of 79,000 units in beginning inventory $0.00 Cost of units started and completed this period EUP Cost per EUP Total cost Direct materials $0.00 $0.00 Conversion costs $0.00 0.00 Total cost of 316,000 units started and completed Total cost of 395,000 units transferred out Costs of units in ending inventory EUP Cost per EUP Total cost Direct materials $0.00 $0.00 Conversion costs $0.00 0.00 Total cost of 101,000 units in ending inventory Total costs assigned

Explanation / Answer

PRODUCTION COST REPORT UNIITS % MATERIAL EUP-MATERIAL % CONVERSION EUP-CONVERSION UNIts to complete beginning WIP 79000 20% 15800 80% 63200 Units started and completed 316000 100% 316000 100% 316000 Uniits in Ending WIP 101000 85% 85850 35% 35350 Equivalent units of production 496000 417650 414550 COST PER EQUIVALENT PRODUCTION MATERIAL CONVERSION Total cost Cost 1336480 Cost 970047 Divide: Equivalent units of production EUP 417650 EUP 414550 Cost per Equivalent units 3.2 2.34 TOTAL COST TO ACCOUNTS FOR: Material ccost of Begnning WIP 250325 Converision of Beginning WIP 19758 Material current cost 1336480 Conversion current cost 970047 TOTAL cost to account for 2576610 Total cost accounted for: 2576610 * Difference due t o rounding off. 0 ASSIGNMENT OF COSTTO OUTPUT Cost of 79000 from Beginning WIP Beginning Inventory 270083 EUP COST PER EUP TOTAL COST Material to complte 15800 3.2 50560 Conversion to complete 63200 2.34 147888 Total cost to complete 198448 Total cost to 79000 units in beginning Inv. 468531 Cost of units started and completetd EUP COST PER EUP TOTAL COST Material 316000 3.2 1011200 Converrsion 316000 2.34 739440 Total cost of 316000 units 1750640 Total cost of 395000 units transferred out 2219171 Cost of Ending WIP EUP COST PER EUP TOTAL COST Material 85850 3.2 274720 Conversion 35350 2.34 82719 Total cost of 101000 units of Ending WIP 357439 Total cost assigned 2576610

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