I figured out the weighted average method, but can anyone show me the FIFO and LIFO...

I figured out the weighted average method, but can anyone show me the FIFO and LIFO treatment of this problem????

Timekeeper Inc. manufactures clocks on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Timekeeper Inc. uses weighted-average costing. Data for the Assembly Department for June 2015 are: Work in process, beginning inventory 350 units Direct materials (100% complete) Conversion costs (50% complete) Units started during June 1050 units Work in process, ending inventory: 160 units Direct materials (100% complete) Conversion costs (75% complete) Costs for June 2015: Work in process, beginning inventory: Direct materials $91,000 Conversion costs $136,500 Direct materials costs added during June $603,500 Conversion costs added during June $401,500 Required: What is the conversion cost per equivalent unit in June?

Expert Solution

Requirement asked [Last Line of question] = Conversion cost per Equivalent units.
The above requirement is asked to be solved by FIFO. LIFO is not used in Process Costing. FIFO and Weighted Average Method are only used.
Workings leading to the answer required by the question:

Units Reconciliation
*Units to account for:*
Beginning WIP	350
Units started this period	1,050
Total Units to account for	1,400
*Total Units accounted for:*
Completed & Transferred out	1,240 [1400 – 160]
Ending WIP	160
Total Units accounted for	1,400

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	160	100%	160	75%	120
Units STARTED & COMPLETED	890 [1240 – 350]	100%	890	100%	890
Units of beginning WIP	350	0%	-	50% [50% was already complete]	175
Equivalent Units of Production			1,050		1,185

Answer

COST per EUP		Conversion
Cost incurred this period		$ 401,500.00
Total Costs	Costs	$ 401,500.00
Equivalent units of production	EUP	1,185
Cost per EUP		$ 338.81857 or $ 338.82 = ANSWER

the conversion cost per equivalent unit in June = $ 338.81857 or $ 338.82 = Answer

ekkarill92 answered 6 months ago

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I figured it out thanks

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