Question

1. A department uses the FIFO method of process costing. All direct materials are added at the beginning of the process. This department has the following data for this month.

   • 166 units in beginning WIP (56% complete with respect to conversion costs).
   • 10,206 units started
   • 184 units in ending WIP (43% complete with respect to conversion costs).
   • $22 direct material cost per equivalent unit
   • $12 conversion cost per equivalent unit

   What is the department's total cost of ending WIP for this month (round final answer to nearest cent if necessary)?

Answer 1

Answer-----------Department's total cost of ending WIP for this month= $4,997.44

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	166	100%	56%	0%	44%
Units introduced	10,206
Total units to be accounted for	10,372
Completed and Transferred unit	10,188	0%	0%	100%	100%
Ending WIP	184	0%	0%	100%	43%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material		Conversion cost
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	166	0%	-	44%	73
From units started/Introduced	10,022	100%	10,022	100%	10,022
Total	10,188		10,022		10,095
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	184	100%	184	43%	79
Total EUP	10,372		10,206		10,174

.

Cost of	Ending WIP		184.00	units
	Equivalent Units [Step 2]	Cost per Equivalent Units [Step 3]	Cost of Ending WIP	TOTAL
Material	184	$ 22.00	$ 4,048
Conversion cost	79	$ 12.00	$ 949
Total Cost of Ending WIP				$ 4,997.44