Question

Landry Co. had the following information for the month of December. All direct materials were one hundred percent complete, and beginning materials cost $15,700. Work in Process Inventory Beginning balance @ 12/1: 320 units, 10% completed $ 19,000 Completed 980 units and transferred them to finished goods inventory $ 171,321 Direct materials 64,000 Direct labor 40,000 Overhead Property taxes 9,000 Depreciation 40,000 Utilities 24,000 Indirect labor 7,000 Ending balance @ 12/31: 370 units, 20% completed $ 31,679 Cost per equivalent unit for materials under the FIFO method is calculated to be (rounded):

ultiple Choice

• $76.972.

• $61.574.

• $72.264.

• $62.136.

• $117.417.

Answer 1

Correct answer------------$62.136

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	320	100%	10%	0%	90%
Units introduced	1,030
Total units to be accounted for	1,350
Completed and Transferred unit	980	0%	0%	100%	100%
Ending WIP	370	0%	0%	100%	20%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material		Conversion cost
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	320	0%	-	90%	288
From units started/Introduced	660	100%	660	100%	660
Total	980		660		948
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	370	100%	370	20%	74
Total EUP	1,350		1,030		1,022

.

STEP 3
Cost per Equivalent Units AND Cost to be accounted for
	Material
Cost incurred in Current Period	$ 64,000
Total Equivalent Units	1,030
Cost per Equivalent Units	$ 62.136