Question

1. A department uses the FIFO method of process costing. All direct materials are added at the beginning of the process. This department has the following data for this month.

   • 147 units in beginning WIP (74% complete with respect to conversion costs).
   • 10,415 units started
   • 239 units in ending WIP (61% complete with respect to conversion costs).
   • $13 direct material cost per equivalent unit
   • $11 conversion cost per equivalent unit

   What is the department's total cost of ending WIP for this month (round final answer to nearest cent if necessary)?

Answer 1

Answer------------Cost of Ending WIP = $4,710.69

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	147	100%	74%	0%	26%
Units introduced	10,415
Total units to be accounted for	10,562
Completed and Transferred unit	10,323	0%	0%	100%	100%
Ending WIP	239	0%	0%	100%	61%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material		Conversion cost
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	147	0%	-	26%	38
From units started/Introduced	10,176	100%	10,176	100%	10,176
Total	10,323		10,176		10,214
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	239	100%	239	61%	146
Total EUP	10,562		10,415		10,360

.

Cost of	Ending WIP		239.00	units
	Equivalent Units [Step 2]	Cost per Equivalent Units [Step 3]	Cost of Ending WIP	TOTAL
Material	239	$ 13.00	$ 3,107
Conversion cost	146	$ 11.00	$ 1,604
Total Cost of Ending WIP				$ 4,710.69