Question
In: Accounting
Nihonno Tsukuruno, Inc. uses the FIFO method of process costing. The firm has only one production...
Nihonno Tsukuruno, Inc. uses the FIFO method of process costing. The firm has only one production department. It has the following cost per equivalent unit rates for the month of January. $12.50 direct materials per equivalent unit $17.25 conversion costs per equivalent unit Here are some additional details about the firm. The firm began the period (i.e. January 1) with $10,000 of direct materials cost and $15,000 of conversion costs in beginning WIP. Those beginning WIP costs were incurred for 1,000 beginning WIP units that were 50% complete with respect to conversion costs and direct materials. The firm completed and transferred out a total of 59,000 units in January. What is the cost of units completed and transferred out for January (including direct materials costs and conversion costs)? Selected Answer: d. $1,755,250 Answers: a. $1,780,250 b. $1,740,375 c. $1,765,375 d. $1,755,250
Solutions
Expert Solution
| VALUATION OF OUTPUT TRANSFERRED | |||
| Particulars | UNITS | RATE PER UNIT | |
| Opening WOP | 1000 | $ 25,000.00 | |
| ADD: | |||
| Material | 500 | $ 12.50 | $ 6,250.00 |
| Labour | 500 | $ 17.25 | $ 8,625.00 |
| VALUE OF UNITS FINISHED FROM OPENING WIP | $ 39,875.00 | ||
| VALUE OF UNITS COMPLETED DURING THE PROCESS | 58000 | $ 29.75 | $ 1,725,500.00 |
| VALUE OF TOTAL 59000 UNITS FINISHED DURING THE PROCESS | $ 1,765,375.00 | ||
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Units transferred out
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Units transferred out
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Work in process inventory, ending
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follow:
Units
Materials
Labor
Overhead
Work in process inventory, beginning
5,000
$
4,320
$
1,040
$
1,790
Units started in process
45,000
Units transferred out
42,000
Work in process inventory, ending
8,000
Cost added during the month
$
52,800
$
21,500
$
32,250
The beginning work in process inventory was 80%...
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In October, Manchaca Company, who uses the FIFO method for process costing, had the following production...
In October, Manchaca Company, who uses the FIFO method for
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data:
Beginning inventory units*
42,600
October completed production
1,570,000
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28,400
Beginning inventory cost
$458,482
October direct material cost per EUP
$10.74
October direct labor cost per EUP
$13.88
October overhead cost per EUP
$24.80
* 80% complete as to DM; 45% complete as to DL; 30% complete as
to OH
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PART III: PROCESS COSTING /22
MARKS
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Percent complete with respect to materials
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Percent complete with respect to conversion
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Materials cost
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530
Conversion cost
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16,000
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Randall Inc. manufactures pocket protectors and uses the FIFO
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