Question

Mullins Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

Beginning work in process inventory:
Units in beginning work in process inventory		1150?
Materials costs	$	12,400?
Conversion costs	$	22,650?
Percent complete with respect to materials		75?	%
Percent complete with respect to conversion		65?	%
Units started into production during the month		9500?
Units transferred to the next department during the month		8700?
Materials costs added during the month	$	168,300?
Conversion costs added during the month	$	357,500?
Ending work in process inventory:
Units in ending work in process inventory		1950?
Percent complete with respect to materials		65?	%
Percent complete with respect to conversion		50?	%

The cost of a completed unit transferred out of the department is closest to: (Round equivalent units to the nearest whole number and round all other intermediate calculations to 2 decimal places.)

Answer 1

• Requirement: Cost of completed units transferred

Answer
$ 498,305.10
The Option must be closest to the amount mentioned amount.

• Workings

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	1,950	65.0%	1,268	50.0%	975
Units STARTED & COMPLETED	7,550	100%	7,550	100%	7,550
Units of beginning WIP	1,150	25.00%	288	35.00%	403
Equivalent Units of Production			9,105		8,928
COST per EUP			Material		Conversion
Cost incurred this period			$       168,300.00		$                  357,500.00
Total Costs		Costs	$      168,300.00	Costs	$                  357,500.00
Equivalent units of production		EUP	9,105	EUP	8,928
Cost per EUP			$           18.48		$                     40.04

--Answer

Cost Transferred out:	EUP	Cost per EUP	Total Cost
Cost of Beginning WIP			$          35,050.00
Cost to complete beginning WIP-
- Direct Materials	288	$                            18.48	$            5,313.00
- Conversion	403	$                            40.04	$          16,116.10
Total cost to complete beginning WIP			$          56,479.10
Cost of Units started & completed this period:	EUP	Cost per EUP	Total Cost
- Direct Materials	7,550	$                            18.48	$       139,524.00
- Conversion	7,550	$                            40.04	$       302,302.00
Total costs started & Completed this period			$       441,826.00
Total cost of work finished this period				$             498,305.10 =Answer