Question

The Company uses the FIFO method of process costing. All direct materials are added at the beginning of processing, and overhead is charged to units on the basis of direct labor hours. At the beginning of March, the company had 2,000 units in Work in Process that were 80% complete as to processing. These 2,000 units had been charged $9,000 for direct materials and $8,400 for conversion cost during February. During March, the company started 30,000 units and completed 27,000 units. The ending Work in Process for March consisted of 4,000 units that were 40% complete as to processing. The company accepts 2% of the good units completed as normal spoilage. Anything above this amount is considered to be abnormal spoilage. The production costs incurred during March include $135,000 for direct materials and $89,600 for conversion cost.

Prepare a complete equivalent units chart for March. Remember that the company uses FIFO. Do NOT just give me a total number of equivalent units. Show me all of the intermediate numbers, but you don't have to show me the computations. In other words, if part of the answer is .1 x 1,000 = 100, you don't need to show me the .1 x 1,000 part. Just show me the 100

Compute the unit costs for direct materials and for conversion costs for March for the Company. Round your answers to the nearest cent, please.

Compute the total Cost of Goods Manufactured for the Company for March. You must show all of your work in order to get partial credit.

Answer 1