Question

BeGone manufactures spray cans of insect repellent. On August 1, the company

had 15,680 units in the beginning WIP Inventory that were 100 percent complete

as to canisters, 60 percent complete as to other materials, 40 percent complete

as to direct labor, and 20 percent complete as to overhead. During August,

BeGone started 130,400 units in the manufacturing process. Ending WIP

Inventory included 7,360 units that were 100 percent complete as to canisters,

40 percent complete as to other materials, 20 percent complete as to direct

labor, and 10 percent complete as to overhead. Cost information for the month

is as follows:

Beginning WIP Inventory

Canisters $10,456

Other direct materials 8,644

Direct labor 8,950

Overhead 1,712

August costs

Canisters $99,104

Other direct materials 138,869

Direct labor 114,836

Overhead 256,282

Prepare a schedule showing the BeGone August computation of FIFO equivalent units of production and cost per equivalent unit.

Note: Round the cost per equivalent unit amounts to two decimal places.

1. FIFO equivalent units of production

Canisters Other Materials DL OH

Beginning WIP Inventory Answer Answer Answer Answer

Started & completed Answer Answer Answer Answer

EI Answer Answer Answer Answer

EUP Answer Answer Answer Answer

2. Schedule of cost per equivalent units of production

Canisters Other Materials DL OH Total

Current period Answer Answer Answer Answer Answer

Divided by EUP Answer Answer Answer Answer

Cost per EUP Answer Answer Answer Answer Answer

Answer 1

	Physical units	Canisters	Other Material	Direct Labor	Overhead
Work in Process Beginning	15680
Started during the period	130400
Total Units to account for	146080
Work in Process Beginning	15680	0	6272	9408	12544
Units started and completed	123040	123040	123040	123040	123040
Units transferred to next department	138720	123040	129312	132448	135584
Ending Work in Process :	7360	7360	2944	1472	736
Total Units Accounted for	146080
Equivalent units		130400	132256	133920	136320
	Canisters	Other Material	Direct Labor	Overhead	Total
Cost added during the period	$          99,104	$         138,869	$          114,836	$     256,282	$      609,091
Equivalent units of Production	130400	132256	133920	136320
Cost per equivalent unit	$               0.76	$               1.05	$                 0.86	$            1.88	$             4.55