Question

THE Company operates a single processing department and
uses a FIFO process costing system. The equivalent units
for August were calculated as 88,620 for direct materials
and 73,910 for conversion. THE Company's work in process
at August 1 was:

                                    % complete    % complete
                           units       DM         conversion 
work in process, Aug. 1    36,000      59%           25%

The cost of beginning work in process and the costs added
during August were as follows:

                                 DM           Conversion
work in process, Aug. 1       $ 44,310         $ 36,955
costs incurred during Aug.    $372,204         $243,903

Calculate the total cost of the 36,000 units in the beginning
work in process.

Answer 1

Correct Option $151,092
Working Note:
	Actual Units	Equivalent Units
		Material	CC
From units in beginning inventory	36000	14760	27000
Equivalent Units (Total)		88,620	73,910
Costs:
	Total	Material	CC
Costs in beginning inventory	0	0	0
Cost added dueing the year	616107	372204	243903
Total cost to account for	616107	372204	243903
Equivalent Units from above		88620	73910
Cost per equivalnet unit	7.50	4.20	3.30
	Total	Material	CC
Cost Accounted for
From units in beginning inventory	151092	61992	89100
Total Cost Accounted for	151092	61992	89100