Question

Yarmouth Company produces a liquid solvent in two departments: Mixing and Finishing. Accounting records at Yarmouth show the following information for Finishing operations for February (no new material is added in the Finishing Department).

WIP inventory—Finishing
Beginning inventory (10,500 units, 20% complete with respect to Finishing costs)
Transferred-in costs (from Mixing)	$	119,550
Finishing conversion costs		7,615
Current work (99,000 units started)
Mixing costs		920,700
Finishing costs		460,690

The ending inventory has 14,500 units, which are 50 percent complete with respect to Finishing Department costs and 100 percent complete for Mixing Department costs.

Required:
a. Complete the production cost report using the FIFO method. (Round "Cost per equivalent unit" to 2 decimal places.)

Answer 1

a. Complete the production cost report using the FIFO method. (Round "Cost per equivalent unit" to 2 decimal places.)
		Equivalent  Units
	Physical Units	Mixing Department	Finishing Department
Flow of Units
Units to be accounted for
Beginning WIP Inventory	10,500
Units Started this Period	99,000
Total units to account for	109,500
Units account for
Completed and transferred out
From beginning WIP Inventory	10,500
Mixing
Finishing			8,400
Started and Completed currently	84,500	84,500	84,500
Units Ending WIP inventory	14,500
Mixing		14,500
Finishing			7,250
Total units accounted for	109,500	99,000	100,150
	Total	Mixing Department	Finishing Department
Flow of costs:
Costs to be accounted for:
Costs in beginning WIP inventory	$                                 127,165	$    119,550	$          7,615
Current period costs	$                              1,381,390	$    920,700	$      460,690
Total costs to be accounted for	$                              1,508,555	$ 1,040,250	$      468,305
Cost per equivalent unit
Mixing		$          9.30
Finishing			$            4.60
Cost accounted for:
Costs assigned to units transferred out
Costs of  Beginning WIP inventory	$                                 127,165	$    119,550	$          7,615
Current cost added to complete beginning WIP	$                                   38,640
Mixing
Finishing			$        38,640
Current cost of units started and completed	$                              1,174,550
Mixing		$    785,850
Finishing			$      388,700
Total cost transferred out	$                              1,340,355	$    905,400	$      434,955
Cost of ending WIP Inventory	$                                 168,200
Mixing		$    134,850
Finishing			$        33,350
Total costs accounted for	$                              1,508,555	$ 1,040,250	$      468,305