$12 FIFO Jarvene Corporation uses the FIFO method in its process costing system.
ID: 2547626 • Letter: #
Question
$12 FIFO Jarvene Corporation uses the FIFO method in its process costing system. The following data are for the most recent month of operations in one of the company's processing departments Units in beginning inventory Units started into production Units in ending inventory Units transferred to the next department 370 4,290 340 4,320 Percentage completion of beginning 70% 30% Percentage completion of ending inventory 70% 50% The cost of beginning inventory according to the company's costing system was $7,836, of which $4,852 was for materials and the remainder was for conversion cost. The costs added during the month amounted to $178,099. The costs per equivalent unit for the month were: Materials Conversion Cost per equivalent unit $18.00 $23.00 Required 1. Compute the total cost per equivalent unit for the month. 2. Compute the equivalent units of material and of conversion in the ending inventory. 3. Compute the equivalent units of material and of conversion that were required to complete the beginning inventory 4. Determine the number of units started and completed during the month. 5. Determine the costs of ending inventory and units transferred outExplanation / Answer
% of completion Equivalent units Materials Conversion Materials Conversion Units to account for: Beginning Inventory 370 Started into production 4290 Total Units to account for 4660 Units accounted for: Units completed & transferred From beg. Inventory 370 30% 70% 111 259 From currently started (4320-370) 3950 100% 100% 3950 3950 Total units transferred to next dept. 4320 4061 4209 Units in Ending inventory 340 70% 50% 238 170 Total Units accounted for 4660 4299 4379 Costs to account for Total Beginning Inventory 4852 2984 7836 Costs added during the month(a*b) 77382 100717 178099 Total Costs to account for 82234 103701 185935 a.Total equivalent units(From above) 4299 4379 b.Cost per equivalent unit for the month (GIVEN) 18 23 41 Costs accounted for: Beginning Inventory 4852 2984 7836 Costs added to beg. Inv.to complete 1998 5957 7955 1..Total cost of beg. Inventory 6850 8941 15791 2. Cost of started & completed 71100 90850 161950 (1+2)Total cost of completed& transfd. to next dept. 77950 99791 177741 3..Cost of Ending Inventory 4284 3910 8194 (1+2+3)Total Costs accounted for 82234 103701 185935 ANSWERS: 1.Total cost per equivalent unit for the month(18+23) 41 2.Equivalent units of material & conversion in the ending inventory Materials Conversion 238 170 3.Eq. units reqd. to complete the beg.Inventory Materials Conversion 111 259 4.No.of units started & completed during the month---------- 3950 units 5…. Materials Conversion Total Cost of Ending Inventory 4284 3910 8194 Total cost of units transfd. to next dept. 77950 99791 177741 82234 103701 185935
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