Question

Given below is November's unit and cost data for a manuclaclaring fine that uses FIFO costing.

 

Required:

A] Calculate the equivalent units ford,ot materials and conversion cos.

B) Prepare the COST ACCOUNTED FOR section of the cast of production report for department 2.

Answer 1

A.)		Direct Materials	Conversion Costs
	Work in process inventory-Beginning ( 45% M, 85% CC )	60,750	114,750
	Units started & Completed ( 430,000 - 135,000 )	295,000	295,000
	Work in process inventory-Ending (125,000 ) ( 25% M, 70% CC )	31,250	87,500
	Equivalent units	387,000	497,250
B.)		Direct Materials	Conversion Costs
	Cost incurred during this period	812,700	1,163,565
	/ Equivalent units	387,000	497,250
	Cost per equivalent units	2.10	2.34
	Total Costs to be accounted for
	Work in process- Beginning	472,500
	Add: Cost added this period ( 812,700 + 676,260 + 487,305 )	1,976,265
	Total Costs to be accounted for	Rs. 2,448,765
	Cost accounted for
	Work in process- Beginning	472,500
	Work in process- Beginning, completed this period
	Direct materials ( 60,750 x 2.10 )	127,575
	Conversion Costs ( 114,750 x 2.34 )	268,515
	Units started & Completed this period
	Direct materials ( 295,000 x 2.10 )	619,500
	Conversion Costs ( 295,000 x 2.34 )	690,300
	Work in process Inventory- Ending
	Direct Materials ( 31,250 x 2.10 )	65,625
	Conversions cost ( 87,500 x 2.34 )	204,750
	Total Costs accounted for	Rs. 2,448,765

A.)		Direct Materials	Conversion Costs
	Work in process inventory-Beginning ( 45% M, 85% CC )	60,750	114,750
	Units started & Completed ( 430,000 - 135,000 )	295,000	295,000
	Work in process inventory-Ending (125,000 ) ( 25% M, 70% CC )	31,250	87,500
	Equivalent units	387,000	497,250