Question
In: Accounting
Jarvene Corporation uses the FIFO method in its process costing system. The following data are for...
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 | 440 |
| Units started into production | 4,260 |
| Units in ending inventory | 280 |
| Units transferred to the next department | 4,420 |
| Materials | Conversion | |||
| Percentage completion of beginning inventory | 70 | % | 30 | % |
| Percentage completion of ending inventory | 70 | % | 50 | % |
The cost of beginning inventory according to the company’s costing system was $7,896 of which $4,847 was for materials and the remainder was for conversion cost. The costs added during the month amounted to $179,388. 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 conversion in the ending inventory.
3. Compute the equivalent units of material and conversion that were required to complete the beginning inventory.
4. Compute the number of units started and completed during the month.
5. Compute the cost of ending work in process inventory for materials, conversion, and in total for the month.
6. Compute the cost of the units transferred to the next department for materials, conversion, and in total for the month.
Solutions
Expert Solution
1. .Total cost per equivalent unit for the month = $18+23 = $41 per unit
2. Equivalent units for material and conversion in ending inventory:
| Material (280*70%) | 196 |
| Conversion (280*50%) | 140 |
| Total equivalent units | 336 |
3. Equivalent units for material and conversion to complete beginning inventory:
| Material (440*30%) | 132 |
| Conversion (440*70%) | 308 |
| Total equivalent units | 440 |
4. Number of units started and completed:
| Units transferred to next department | 4,420 |
| Units in beginning inventory | -440 |
| Units started and completed | 3,980 |
5.
| Material (196*$18) | $3,528 |
| Conversion (140*$23) | 3,220 |
| Total cost of ending work in process | $6,748 |
6.
| Beginning work in process: | ||
| Beginning balance | $7,896 | |
| Add: Cost added during the month (132*$18+308*$23)2,376+7,084 | 9,460 | |
| Total | $17,356 | |
| Cost of units started and completed: | ||
| Material (3,980*$18) | 71,640 | |
| Conversion (3,980*$23) | 91,540 | |
| Total | 163,180 | |
| Total cost of units completed and transferred | $180,536 |
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Jarvene Corporation uses the FIFO method in its process costing system. The following data are for...
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
390
Units started into
production
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Units in ending inventory
340
Units transferred to the next
department
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Materials
Conversion
Percentage completion of
beginning inventory
80
%
20
%
Percentage completion of ending
inventory
70
%
30
%
The cost of beginning inventory according to the company’s...
Jarvene Corporation uses the FIFO method in its process costing system. The following data are for...
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Units started into production
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Units in ending inventory
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Units transferred to the next department
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Percentage completion of beginning inventory
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Percentage completion of ending inventory
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The cost of beginning inventory according to the company’s...
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Percentage completion of beginning inventory
60
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Percentage completion of ending inventory
70
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50
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