Question

Yarmouth Company produces a liquid solvent in two departments: Mixing and Finishing. Accounting records at Yarmouth show the following information for Finishing operations for February (no new material is added in the Finishing Department).

WIP inventory—Finishing
Beginning inventory (10,300 units, 25% complete with respect to Finishing costs)
Transferred-in costs (from Mixing)	$	115,510
Finishing conversion costs		9,295
Current work (98,600 units started)
Mixing costs		897,260
Finishing costs		436,370

The ending inventory has 14,300 units, which are 50 percent complete with respect to Finishing Department costs and 100 percent complete for Mixing Department costs.

Complete the production cost report using the FIFO method

Physical Units Equivalent Units Mixing Department Finishing Department Flow of units: Units to be accounted for: Beginning WIP inventory Units started this period Total units to account for Units accounted for: Completed and transferred out From beginning WIP inventory Mixing Finishing Started and completed currently Units in ending WIP inventory Mixing Finishing Total units accounted for Total Mixing Department Finishing Department Flow of costs: Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for Cost per equivalent unit Mixing Finishing Costs accounted for: Costs assigned to units transferred out: Costs from beginning WIP inventory Current costs added to complete beginning WIP inventory Mixing Finishing Current costs of units started and completed: Mixing Finishing Total costs transferred out Cost of ending WIP inventory Mixing Finishing Total costs accounted for

Answer 1

Solution

	Physical Units	Equivalent Units
		Mixing Department	Finishing Department
Flow of units:
Units to be accounted for:
Beginning WIP inventory	10300
Units started this period	98600
Total units to account for	108900
Units accounted for:
Completed and transferred out
From beginning WIP inventory	10300
Mixing		0
Finishing			7725
Started and completed currently	84300	84300	84300
Units in ending WIP inventory	14300
Mixing		14300
Finishing			7150
Total units accounted for	108900	98600	99175
	Total	Mixing Department	Finishing Department
Flow of costs:
Costs to be accounted for:
Costs in beginning WIP inventory	124805	115510	9295
Current period costs	1333630	897260	436370
Total costs to be accounted for	1458435	1012770	445665
Cost per equivalent unit
Mixing		9.10
Finishing			4.40
Costs accounted for:
Costs assigned to units transferred out:
Costs from beginning WIP inventory	124805	115510	9295
Current costs added to complete beginning WIP inventory
Mixing	0	0
Finishing	33990		33990
Current costs of units started and completed:
Mixing	767130	767130
Finishing	370920		370920
Total costs transferred out	1296845	882640	414205
Cost of ending WIP inventory
Mixing	130130	130130
Finishing	31460		31460
Total costs accounted for	1458435	1012770	445665