Question

​WIP, beginning inventory​ 2/1/2017	​52,000 units
Direct materials​ (100% complete)
Conversion costs​ (50% complete)
Started during February	​170,400 units
Completed and transferred out	​180,600 units
​WIP, ending inventory​ 2/28/2017	​26,900 units
Direct materials​ (100% complete)
Conversion costs​ (20% complete)
​Costs:
​ WIP, beginning​ inventory:
Direct materials	​$280,100
Conversion costs	​80,400
Direct materials added	​408,000
Conversion costs added	​264,400

What costs are allocated to the ending

workminus−inminus−process

inventory for direct materials and conversion​ costs, respectively, using the FIFO method of process​ costing? (Round any cost per unit calculations to the nearest​ cent.)

A.

​$40,619; $12,552

B.

​$64,291; $8,124

C.

​$1,285,820; $8,124

D.

​$62,816; $32,980

Answer 1

Option(B) $64,291 ; $8,124 is correct.

	FIFO
Step1	Unit Reconciliation
	Beginning WIP	52000
	Started	170400
	Total units accounted for:	222400
	Beginning WIP	52000
	Completed (8700-1300)	143500
	Ending WIP	26900
	Total units accounted for:	222400
	First, The units transferred out is divided into two. One part is beginning WIP and another is started and completed during the current year.
Step2	Equivalent units of production
	Particulars	Units	% of Material	EUP-Material	%Conversion	EUP -Conversion cost
	Beginning WIP	52000	0%	0	50%	26000
	Completed	143500	100%	143500	100%	143500
	Ending WIP	26900	100%	26900	20%	5380
	Total UNITS	222400		170400		174880
	Cost per Equivalent unit of production
	Started and completed			$     408,000		$              264,400
	Total Costs			$     408,000		$              264,400
	Div, Equivalent units			170400		174880
	Cost per Equivalent unit of production			$            2.39		$                     1.51	$   3.91
c.	Total costs accounted for:
	Cost of units transferred out:	EUP	Cost per EUP	Total costs
	Direct Material	143500	$                 2.39	$     343,592
	Conversion cost	143500	$                 1.51	$     216,957
					$        560,548
d.	Cost of Ending WIP:	EUP	Cost per EUP	Total costs
	Direct Material	26900	$                 2.39	$       64,291
	Conversion cost	5380	$                 1.51	$         8,124
					$          72,415
	Total costs accounted for				$        632,963

First, The units transferred out is divided into two. One part is beginning WIP and another is started and completed during the current year.

*****************************************

If you like the answer, kindly raise your THUMBS-UP button.
If you have any doubts, drop your messages in the comment box! Thank you!!!  ALL THE BEST!!!!
#STAY SAFE