Question

Jordana Woolens is a manufacturer of wool cloth. The information for March is as follows:

Beginning work in process	10,000 units
Units started	20,000 units
Units completed	25,000 units
​	​
Beginning work-in-process direct materials	$ 6,000
Beginning work-in-process conversion	$ 2,600
Direct materials added during month	$30,000
Direct manufacturing labor during month	$12,000
Factory overhead	$ 5,000

Beginning work in process was 50% complete for conversion cost and 100% complete for DM. All conversion costs are incurred evenly throughout the process. Ending work in process was 60% complete for Conversion cost and 100% complete for DM.

Required: Prepare a production cost worksheet using the FIFO method.

Answer 1

My format of answer maybe diferent than what you have

Solution

Cost report [Including Reconciliation]
	Cost of	Units Transferred	25,000.00	units
		Equivalent Units [Step 2]	Cost per Equivalent Units [Step 3]	Cost of Units Transferred	TOTAL
A	From Beginning WIP:
	Material	-	$ 1.50	$ 0
	Conversion	5,000	$ 0.74	$ 3,696	$ 3,696
B	From units started & completed
	Material	15,000	$ 1.50	$ 22,500
	Conversion	15,000	$ 0.74	$ 11,087	$ 33,587
C=A+B	Total				$ 37,283
D	Cost of Beginning WIP		$ 8,600
E=C+D	Total Cost of Units transferred		$ 45,883
	Cost of	Ending WIP	5,000.00	units
		Equivalent Units [Step 2]	Cost per Equivalent Units [Step 3]	Cost of Ending WIP	TOTAL
F	Material	5,000	$ 1.50	$ 7,500
G	Conversion	3,000	$ 0.74	$ 2,217
H = F + G	Total Cost of Ending WIP		$ 9,717
I = E + H	Total Cost accounted for	$ 55,600
J	Rounding Off Differences	$ 0
K = I + J	Total cost to be accounted for [equals to computed in STEP 3]	$ 55,600

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed	% completed this period
	Material	Conversion	Material	Conversion
Beginning WIP	10,000	100%	50%	0%	50%
Units introduced	20,000
Total units to be accounted for	30,000
Completed and Transferred unit	25,000	0%	0%	100%	100%
Ending WIP	5,000	0%	0%	100%	60%

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material	Conversion
Units Transferred:	% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	10,000	0%	-	50%	5,000
From units started/Introduced	15,000	100%	15,000	100%	15,000
Total	25,000		15,000		20,000
	Total Units	Material	Conversion
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	5,000	100%	5,000	60%	3,000
Total EUP	30,000		20,000		23,000

STEP 3
Cost per Equivalent Units AND Cost to be accounted for
	Material	Conversion	TOTAL
Cost incurred in Current Period	$ 30,000	$ 17,000	$ 47,000
Total Equivalent Units	20,000	23,000
Cost per Equivalent Units	$ 1.50	$ 0.74	$ 2.24
Cost of Beginning WIP			$ 8,600
Total cost to be accounted for	$ 55,600