Question

Lumberjacks, Inc. makes wood frames. They have a single department and they use process
costing (FIFO method).
On January 31, they had the following costs in WIP:
	Material	$        45,860
	Conversion	95,340
		$      141,200
	There were 3,000 frames on hand at 1/31. The frames were 80% complete
	wrt Materials costs but only 20% complete wrt Conversion costs.
During February, they started 18,450 frames into production. 2,200 frames were not completed
	in February. The uncompleted units were 90% complete wrt materials and 40%
	complete wrt Conversion costs.
Total manufacturing costs incurred in February were:
	Material	$      235,375
	Conversion	488,250
		$      723,625
1. What were the total costs to be accounted for?
2. What was the cost per equivlent unit of production for February for Material?
3. What was the cost per equivlent unit of production for February for Conversion?
4. What was the total cost of the frames transferred to finished goods in February?
5. What was the total cost in WIP at 2/28?

Answer 1