Question

Montreal Manufacturing Inc. has the following cost and production data for the month of April. Beginning WIP 17,100 units Started in production 104,500 Completed production 91,300 Ending WIP 30,300 The beginning inventory was 60% complete for conversion costs. The ending inventory was 40% complete for conversion costs. Materials are added at the beginning of the process. Costs pertaining to the month of April are as follows: Beginning inventory costs are:      Materials $66,100      Direct labour 19,500      Factory overhead 13,600 Costs incurred during April include:      Materials $569,525      Direct labour 199,100      Factory overhead 359,860

Calculate the equivalent units of production for materials and conversion costs for the month of April using the first-in, first-out (FIFO) method. Materials Conversion costs Total equivalent units

Calculate the unit costs for the month. (Round unit cost to 3 decimal places, e.g. 15.256.) Unit costs Materials $ Conversion costs $ Total $

Determine the costs to be assigned to the units transferred out and in ending work in process. (Round answers to 0 decimal places, e.g. 5,275.) Total Materials Conversion Beginning Inventory $ $ $ Complete beginning WIP Started and completed Cost for units transferred out $ $ $ Ending work in process Total costs $ $ $

Answer 1

Units Reconciliation
Units to account for:
Beginning WIP	17,000
Units started this period	104,500
Total Units to account for	121,500
Total Units accounted for:
Completed & Transferred out	91,300
Ending WIP	30,300
Total Units accounted for	121,600

• Requirement 1: Equivalent units

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	30,300	100%	30,300	40%	12,120
Units STARTED & COMPLETED	74,200	100%	74,200	100%	74,200
Units of beginning WIP	17,000	0%	-	40%	6,800
Equivalent Units of Production			104,500 units = Answer for Material		93,100 units = Answer for conversion cost

• Requirement 2

COST per EUP			Material		Conversion
Cost incurred this period			$       569,525.00		$                  558,960.00
Total Costs		Costs	$       569,525.00	Costs	$                  558,960.00
Equivalent units of production		EUP	104,500	EUP	93,100
Cost per EUP			$             5.45		$                        6.004

• Requirement 3

---Working

Cost Transferred out:	EUP	Cost per EUP	Total Cost
Cost of Beginning WIP			$ 99,200.00
Cost to complete beginning WIP-
- Direct Materials	-	$                   5.45	$                         -
- Conversion	6,800	$                   6.004	$          40827.20
Total cost to complete beginning WIP			$       140027.20
Cost of Units started & completed this period:	EUP	Cost per EUP	Total Cost
- Direct Materials	74,200	$                   5.45	$       404,390.00
- Conversion	74,200	$                   6.004	$       445,496.80
Total costs started & Completed this period			$       849,886.80
Total cost of work finished this period				$   989,913.80
Costs of Ending WIP:	EUP	Cost per EUP	Total Cost
- Direct Materials	30,300	$                   5.45	$       165,135.00
- Conversion	12,120	$                   6.004	$          72,768.48
Total cost of ending WIP				$      237,903.48
Total costs accounted for				$   1,227,817.28

--Answer, as asked

	TOTAL	Materials	Conversion
Beginning Inventory	$                     99,200.00	$        66,100.00	$          33,100.00
Completed Beginning WIP	$                       40827.20		$          40827.20
Started & Completed	$                     849886.80	$      404,390.00	$       445,496.80
Cost for units transferred out	$                 989,913.80	$      470,490.00	$       519,424.00
Ending Work in Process	$                     237,903.48	$      165,135.00	$         72768.48
Total Costs	$                 1,227,817.28	$ 635,625.00	$      592,192.48