Question
In: Accounting
Comprehensive Process Costing: FIFO Method The Maxma Beverage Corporation manufactures flavored bottled water and uses process...
Comprehensive Process Costing: FIFO Method
The Maxma Beverage Corporation manufactures flavored bottled water and uses process costing to account for the cost of the products manufactured. Raw material and conversion costs are incurred at the same rate during the production process. Data for the company's mixing department for March are as follows:
| Units | Production Cost | |
|---|---|---|
| Work In Process, March 1 (80% Complete) | 5000 | $6000 |
| Started During March | 100,000 | $1,187,500 |
| Work In Process, March 31 (40% Complete) | 10,000 |
Maxma uses the first-in, first-out method to calculate equivalent units.
Required:
A. How many units were completed in March?
B. How many equivalent units were completed in March?
C. What is the cost per equivalent unit? Round your answer to nearest cent. Use your rounded answer for subsequent calculations.
D. What is the cost of the ending WIP?
E. What is the cost of the units transferred out of the mixing department? That is, what is the cost of goods manufactured during March?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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FIFO Jarvene Corporation uses the FIFO method in its process
costing system. The following data are for the most recent month of
operations in one of the company’s processing departments: Units in
beginning inventory 370 Units started into production 4,290 Units
in ending inventory 340 Units transferred to the next department
4,320 ________________________________________ Materials Conversion
Percentage completion of beginning inventory 70% 30% Percentage
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system. It manufactures a product that passes through two
departments. Data for a recent month for the first department
follow:
Units
Materials
Labor
Overhead
Work in process inventory, beginning
68,000
$
68,700
$
22,800
$
32,900
Units started in process
649,000
Units transferred out
670,000
Work in process inventory, ending
47,000
Cost added during the month
$
804,750
$
239,590
$
409,825
The beginning work in process inventory was 80%...
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system. It manufactures a product that passes through two
departments. Data for a recent month for the first department
follow:
Units
Materials
Labor
Overhead
Work in process inventory, beginning
79,000
$
75,100
$
36,400
$
49,100
Units started in process
751,000
Units transferred out
800,000
Work in process inventory, ending
30,000
Cost added during the month
$
1,557,385
$
612,440
$
688,995
The beginning work in process inventory was 70%...
Pureform, Inc., uses the FIFO method in its process costing system. It manufactures a product that...
Pureform, Inc., uses the FIFO method in its process costing
system. It manufactures a product that passes through two
departments. Data for a recent month for the first department
follow:
Units
Materials
Labor
Overhead
Work in process inventory, beginning
5,000
$
4,320
$
1,040
$
1,790
Units started in process
45,000
Units transferred out
42,000
Work in process inventory, ending
8,000
Cost added during the month
$
52,800
$
21,500
$
32,250
The beginning work in process inventory was 80%...
Pureform, Inc., uses the FIFO method in its process costing system. It manufactures a product that...
Pureform, Inc., uses the FIFO method in its process costing
system. It manufactures a product that passes through two
departments. Data for a recent month for the first department
follow: Units Materials Labor Overhead Work in process inventory,
beginning 65,000 $ 68,500 $ 5,700 $ 21,400 Units started in process
617,000 Units transferred out 610,000 Work in process inventory,
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Jarvene Corporation uses the FIFO method in its process costing system. The following data are for...
Jarvene Corporation uses the FIFO method in its process costing
system. The following data are for the most recent month of
operations in one of the company’s processing departments:
Units in beginning inventory
440
Units started into production
4,260
Units in ending inventory
280
Units transferred to the next department
4,420
Materials
Conversion
Percentage completion of beginning inventory
70
%
30
%
Percentage completion of ending inventory
70
%
50
%
The cost of beginning inventory according to the company’s...
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Units:
Beginning Inventory: 25,000 units, 100% complete as to materials
and 55% complete as to conversion.
Units started and completed: 110,000.
Units completed and transferred out: 135,000.
Ending Inventory: 30,000 units, 100% complete as to materials and
30% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials:
$43,000.
Costs in beginning Work in Process -...
Jarvene Corporation uses the FIFO method in its process costing system. The following data are for...
Jarvene Corporation uses the FIFO method in its process costing
system. The following data are for the most recent month of
operations in one of the company’s processing departments:
Units in beginning inventory
390
Units started into production
4,300
Units in ending inventory
260
Units transferred to the next department
4,430
Materials
Conversion
Percentage completion of beginning inventory
60
%
40
%
Percentage completion of ending inventory
70
%
50
%
The cost of beginning inventory according to the company’s...
Jarvene Corporation uses the FIFO method in its process costing system. The following data are for...
Jarvene Corporation uses the FIFO method in its process costing
system. The following data are for the most recent month of
operations in one of the company’s processing departments:
Units in beginning inventory
360
Units started into production
4,280
Units in ending inventory
320
Units transferred to the next department
4,320
Materials
Conversion
Percentage completion of beginning inventory
80
%
20
%
Percentage completion of ending inventory
90
%
30
%
The cost of beginning inventory according to the company’s...
arvene Corporation uses the FIFO method in its process costing system. The following data are for...
arvene Corporation uses the FIFO method in its process costing
system. The following data are for the most recent month of
operations in one of the company’s processing departments:
Units in beginning inventory
430
Units started into production
4,270
Units in ending inventory
310
Units transferred to the next department
4,390
Materials
Conversion
Percentage completion of beginning inventory
60
%
40
%
Percentage completion of ending inventory
70
%
50
%
The cost of beginning inventory according to the company’s...
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