Question

Department P had the following information regarding equivalent units of production, which were determined using first-in-first-out process costing method:

                                                                                                            Equivalent Units of Production

	Units	Materials	Conversion
Completed and Transferred  (28,000 units):     Work-in-process at the beginning      Started and competed this period Work-in-process at the end of the period	8,000    20,000    14,000	0 20,000 14,000	4,000      20,000        8,400
Quantity Accounted for	42,000	34,000	32,400

The cost information is as follows:

	Total Cost	Material Cost	Conversion Cost
Work-in-process beginning	$ 3,000,000	$  2,000,000	$1,000,000
Cost Added	$18,000,000	$10,500,000	$7,500,000

Required:

1. What were the stages of completion of the work in process with respect to material and conversion cost at the beginning of this period? (Please show your computation)
2. What were the stages of completion of the work in process with respect to material and conversion cost at the end of this period? (Please show your computation).
3. Using the first-in-first-out process costing method, determine:(Please show your computations fully)  

1. The cost of the 28,000 units completed and transferred; and
2. The cost of work-in-process ending inventory.

4. Assuming that the weighted average costing method had been used to compute the equivalent units of production by Department P, determine:

1. What the equivalent units of production would have been for materials and conversion cost (Please show all your computations completely) and
2. The cost per unit for materials and conversion.

Answer 1

FIFO
UNITS TO ACCOUNT FOR:
Beginning Work in Process units		8,000
Add: Units Started in Process		34,000
Total Units to account for:		42,000
UNITS TO BE ACCOUNTED FOR:
Units completed from Beginning WIP	8000
Units started and completed		20,000
Ending Work in Process		14,000
Total Units to be accounted for:	42,000
Equivalent Units:
			Material Cost	Conversion
			% Completion	Units	% Completion	Units
Units completed from Beg. WIP	60%	4,800	30%	2,400
Units started and completed	100%	20,000	100%	20,000
Ending Work in Process	100%	14,000	60%	8,400
Total Equivalent units		38,800		30,800
COST PER EQUIVALENT UNIT:
			Material		Conversion
Total cost added during the year	10,500,000		7,500,000
Equivalent Units		38,800		30,800
Cost per Equivalent unit	270.62		243.51
TOTAL COST ACCOUNTED FOR:
Units Completed from Beginning WIP (8000 units)
			Equivalent unit	Cost per EU	Total Cost
Beginning Cost				3000000
Material			4,800	270.62	1298976
Conversion Cost		2,400	243.51	584424
Cost of units completed from Beg WIP		4883400
Units started and Transferred out (20000 units)
			Equivalent unit	Cost per EU	Total Cost
Material			20,000	270.62	5412400
Conversion Cost		20,000	243.51	4870200
Total Cost of Units completed and transferred out:	10282600
Ending Work in process (14,000 units)
			Equivalent unit	Cost per EU	Total Cost
Material			14,000	270.62	3788680
Conversison Cost		8,400	243.51	2045484
Total cost of Ending Work in process:		5,834,164
Cost of units transferred out:	15166000
Cost of ending inventory:	5,834,164
Weighted Average
UNITS TO ACCOUNT FOR:
Beginning Work in Process units		8,000
Add: Units Started in Process		34,000
Total Units to account for:		42,000
UNITS TO BE ACCOUNTED FOR:
Units started and completed		28,000
Ending Work in Process		14,000
Total Units to be accounted for:	42,000
Equivalent Units:
			Material Cost	Conversion
			% Completion	Units	% Completion	Units
Units started and completed	100%	28,000	100%	28,000
Ending Work in Process	100%	14,000	60%	8,400
Total Equivalent units		42,000		36,400
TOTAL COST TO ACCOUNT FOR:
			Material		Conversion
Beginning work in Process	2,000,000		1,000,000
Cost Added during May	10,500,000		7,500,000
Total Cost to account for:	12,500,000		8,500,000
Total Cost to account for:			21,000,000
COST PER EQUIVALENT UNIT:
			Material		Conversion
Total cost added during the year	12,500,000		8,500,000
Equivalent Units		42,000		36,400
Cost per Equivalent unit	297.62		233.52

****************************************************************************************                                                            
Please upvote ,comment incase any doubt , feel free to comment ,thank you.....