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In: Accounting

LeStrange Industries, who uses the FIFO method of process costing, manufactures products in three sequential processes:...

LeStrange Industries, who uses the FIFO method of process costing, manufactures products in three sequential processes: Molding, Plating, and Finishing. In the Plating process, direct materials are added at the beginning of the process, while conversion costs are incurred evenly throughout the process. The normal spoilage rate in the Plating process is 2% of good units produced. LeStrange provided the following information about the Plating process in June:

Work-in-Process Inventory

Beginning

Ending

Units

1,200

800

Percent of Process Complete

80%

70%

Costs Incurred

Beginning

Work-in-Process

Current Period

Transferred-In Costs

$1,800.00

$10,735.00

Direct Materials Costs

$2,520.00

$32,770.00

Conversion Costs

$1,178.00

$13,560.00

Units

Started

Completed and

Transferred Out

Units

6,200

6,300

Find the following:

Cost per equivalent unit for transferred-in costs:

Dollars

2)

Cost per equivalent unit for direct materials:

Dollars

3)

Cost per equivalent unit for conversion costs:

Dollars

4)

The value of good units completed and transferred out:

Dollars

5)

The value of abnormal spoilage:

Dollars

6)

The value of ending work in process inventory:

Dollars

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Expert Solution

ekkarill92 answered 1 year ago
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