Question

Pablo Company calculates the cost for an equivalent unit of production using process costing.

Data for June
Work-in-process inventory, June 1: 20,000 units
Direct materials: 100% complete	$	40,000
Conversion: 40% complete		16,000
Balance in work-in-process, June 1	$	56,000
Units started during June		48,000
Units completed and transferred out		48,000
Work-in-process inventory, June 30		20,000
Direct materials: 100% complete
Conversion: 80% complete
Costs incurred during June
Direct materials	$	129,600
Conversion costs
Direct labor		129,600
Applied overhead		168,000
Total conversion costs	$	297,600

Required:

1. Compute the cost per equivalent unit for both the weighted-average and FIFO methods. (Round your answers to 3 decimal places.)

	Weighted Aver Cost per EU	FIFO cost per EU
Direct Materials
Converstion
Total Costs

Answer 1

	Weighted Average	Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.
A1.	Quantities			Equivalent Units
			Whole Units	Materials	Conversion Cost
	Units to be account for
	Work in Process, Beginning	100%, 40%	20000
	add:Started into production		48000
	-Total Units		68000
	Units accounted for
	Transferred out		48000	48000	48000
	Work in Process, Ending	100%, 80%	20000	20000	16000	100% and 80%	100%	80%
	Equivalent Units-Weighted Average		68000	68000	64000
A2.	Cost
				Materials	Convsersion Cost	Total
	Work in Process, Beginning			$         40,000	$                   16,000	$            56,000
	add:Started into production			$       129,600	$                 297,600	$          427,200
	Total Cost to account for			$       169,600	$                 313,600	$          483,200
	Equivalent Units			68000	64000
	Unit Cost	Total Cost/Equivalent Units		2.49	4.90	7.39
	FIFO
A1.	Quantities			Equivalent Units
			Whole Units	Materials	Conversion Cost		Complete
	Units to be account for
	Work in Process, Beginning	100%, 40%	20000	0	12000		100%	40%
	Unit Started and Completed in the period	Transferred Out-Beg WIP	48000	48000	48000		100%	100%
	Work in Process, Ending	100%, 80%	20000	20000	16000		100%	80%
	Equivalent Units-FIFO		88000	68000	76000
A2.	Cost
				Materials	Convsersion Cost	Total
	Cost added during period			$       129,600	$                 297,600	$          427,200
	Total Cost to account for			$       129,600	$                 297,600	$          427,200
	Equivalent Units			68000	76000
	Unit Cost	Total Cost/Equivalent Units		1.91	3.92	5.82