In: Accounting
The Poolside Company uses a FIFO process costing system. The following data are available: Beginning inventory 1,000 units (100% complete as to materials and 50% complete as to labor and overhead); Units started in production 19,000; Units finished during the period 16,000; Units in process at the end of the period (100% complete as to materials and 25% complete as to labor and overhead) 4,000; Costs in beginning inventory were materials of $1,500 and Labor and overhead costs $1,000; Cost added during the period were $35,200 for materials and Labor and overhead costs of $37,400.
What is the FIFO cost per equivalent units of labor and overhead added for the period? (Round to the nearest $.001.)
What is the FIFO value of labor and overhead in ending Work in Process Inventory for the period? (Round to the nearest $1.00.)
1) | Statement of cost per equivalent production | |||
Element of costs | Units | Costs | Cost/eq. units | |
Direct Material | 19000 | $ 35,200.00 | $ 1.853 | |
Labor and Overhead | 16500 | $ 37,400.00 | $ 2.267 | |
$ 4.119 |
2)
Cost of Ending WIP | |||
Units | Cost/eq. units | Costs | |
Direct Material | 4000 | $ 1.85 | $ 7,411 |
Labor and Overhead | 1000 | $ 2.27 | $ 2,267 |
Total | $ 9,677 |
Workings:
Statement of equivalent production | Degree of completion | ||||||||
Direct Material | Conversion | ||||||||
Particulars | Units | Particulars | Units | % | Units | % | Units | ||
Beginning WIP | 1000 | Transfer to next process: | |||||||
Units Started | 19000 | From Beginning WIP | 1000 | - | - | 50% | 500 | ||
From Units Started | 15000 | 100% | 15000 | 100% | 15000 | ||||
Ending WIP | 4000 | 100% | 4000 | 25% | 1000 | ||||
20000 | 20000 | 19000 | 16500 |
Please let me know if you find anything incorrect. Thank you