Question
In: Accounting
arvene Corporation uses the FIFO method in its process costing system. The following data are for...
arvene 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 | 430 |
| Units started into production | 4,270 |
| Units in ending inventory | 310 |
| Units transferred to the next department | 4,390 |
| Materials | Conversion | |||
| Percentage completion of beginning inventory | 60 | % | 40 | % |
| Percentage completion of ending inventory | 70 | % | 50 | % |
The cost of beginning inventory according to the company’s costing system was $7,835 of which $4,830 was for materials and the remainder was for conversion cost. The costs added during the month amounted to $178,861. 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
Solution 1:
total cost per equivalent unit = 18 + 23 = $41.00
Solution 2:
equivalent units of material in ending inventory = 310*70% = 217
equivalent units of Conversion in ending inventory = 310*50% = 155
Solution 3:
equivalent units of material required to complete the beginning inventory = 430*40% = 172
equivalent units of Conversion required to complete the beginning inventory = 430*60% = 258
Solution 4:
number of units started and completed = Units transferred to the next department- Beginning units
= 4390 - 430 = 3960
Solution 5:
| Cost of ending work in process | EUP | Cost per EUP | Total Cost |
| Material | 217 | $18.00 | $3,906 |
| Conversion | 155 | $23.00 | $3,565 |
| Total Ending work in process | $7,471 |
Solution 6:
| Cost of Units Transferred Out | EUP | Cost per EUP | Total Cost |
| Material (3960+172) | 4132 | $18.00 | $74,376 |
| Conversion (3960+258) | 4218 | $23.00 | $97,014 |
| Total Added | $1,71,390 | ||
| Add: beginning | $7,835 | ||
| Cost of Units Transferred Out | $1,79,225 |
ekkarill92 answered 2 years agoRelated Solutions
FIFO Jarvene Corporation uses the FIFO method in its process costing system. The following data are...
FIFO 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 370 Units started into production 4,290 Units
in ending inventory 340 Units transferred to the next department
4,320 ________________________________________ 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...
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...
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
4,300
Units in ending inventory
260
Units transferred to the next department
4,430
Materials
Conversion
Percentage completion of beginning inventory
60
%
40
%
Percentage completion of ending inventory
70
%
50
%
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...
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
360
Units started into production
4,280
Units in ending inventory
320
Units transferred to the next department
4,320
Materials
Conversion
Percentage completion of beginning inventory
80
%
20
%
Percentage completion of ending inventory
90
%
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...
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
4,290
Units in ending inventory
340
Units transferred to the next
department
4,340
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...
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
410
Units started into production
4,310
Units in ending inventory
310
Units transferred to the next department
4,410
Materials
Conversion
Percentage completion of beginning inventory
60
%
40
%
Percentage completion of ending inventory
90
%
30
%
The cost of beginning inventory according to the company’s...
Tabet Corporation uses the FIFO method in its process costing system. Operating data for the Curing...
Tabet Corporation uses the FIFO method in its process costing
system. Operating data for the Curing Department for the month of
March appear below:
Units
Percent Complete with Respect to
Conversion
Beginning work in process inventory
5,800
70
%
Transferred in from the prior department during March
57,100
Completed and transferred to the next department during
March
58,800
Ending work in process inventory
4,100
90
%
According to the company’s records, the conversion cost in
beginning work in process inventory...
Mullins Corporation uses the FIFO method in its process costing system. Data concerning the first processing...
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:
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
1,100
Materials costs
$
12,300
Conversion costs
$
22,600
Percent complete with respect to materials
75
%
Percent...
Mullins Corporation uses the FIFO method in its process costing system. Data concerning the first processing...
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
1150?
Materials
costs
$
12,400?
Conversion
costs
$
22,650?
Percent complete
with respect to materials
75?
%
Percent complete
with respect to conversion
65?
%
Units started into
production during the month
9500?
Units transferred
to the next department during the month
8700?...
Mullins Corporation uses the FIFO method in its process costing system. Data concerning the first processing...
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
1,300
Materials costs
$
12,700
Conversion costs
$
22,800
Percent complete with respect to materials
75
%
Percent complete with respect to conversion
65
%
Units started into production during the month
9,800
Units transferred to the next department during the month
9,000...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Can you explain to me the differnces in how we paid for the health care (access...
- Discuss proactive and defensive marketing in context to the company position in the hypothetical market structure...
- Write a java code that could be used to show the simulation of a tornado. use...
- A Canadian company issues an 8-year term bond with face value of $1,000 and 6% coupon...
- 1. Consider the following nuclides: &
- In general, teams can be described three ways. Name and define each.
- JAVASCRIPT: Please create an array of student names and another array of student grades. - Create...
ADVERTISEMENT