Question

TB MC Qu. 5S-74 Mullins Corporation uses the FIFO...

Mullins Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

Beginning work in process inventory:
Units in beginning work in process inventory		1,700
Materials costs	$	13,500
Conversion costs	$	23,200
Percent complete with respect to materials		75	%
Percent complete with respect to conversion		65	%
Units started into production during the month		10,600
Units transferred to the next department during the month		9,800
Materials costs added during the month	$	179,300
Conversion costs added during the month	$	368,500
Ending work in process inventory:
Units in ending work in process inventory		2,500
Percent complete with respect to materials		65	%
Percent complete with respect to conversion		50	%

The cost of a completed unit transferred out of the department is closest to:

Answer 1

Final Answer:	The cost of a completed unit transferred out of the department is closest to:	472,777
	Mullins Corporation
	Production Cost Report (FIFO)
		Actual Units
	Caluclation of Physical UNITS:
	Units in begining inventory	1,700
	Units started during the period	10,600
	Units to be accounted for	12,300
		Actual Units	Equivalent Units
			Material	CC
	Units Completed and Transferred	9,800
	From units in beginning inventory	1,700	425	595
	From units started	8,100	8,100	8,100
	Units in ending inventory	2,500	1,625	1,250
	Total accounted for	12,300	10,150	9,945
	Costs:
		Total	Material	CC
	Costs in beginning inventory	0	0	0
	Cost added dueing the year	547,800	179,300	368,500
	Total cost to account for	547,800	179,300	368,500
	Equivalent Units from above		10,150	9,945
	Cost per equivalnet unit	54.72	17.67	37.05
		Total	Material	CC
	Cost Accounted for
	Units completed and transfer
	From units in beginning inventory	29,555	7,508	22,047
	From units started	443,222	143,087	300,136
	Total cost of completed units	472,777	150,594	322,183
	Units in ending inventory	75,023	28,706	46,317
	Total Cost Accounted for	547,800	179,300	368,500