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During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 81,000 were in process in the production department at the beginning of April and 324,000 were started and completed in April. April's beginning inventory units were 65% complete with respect to materials and 35% complete with respect to conversion. At the end of April, 103,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion.

Prepare the number of equivalent units with respect to both materials used and conversion costs in the production department for April using the FIFO method.

Equivalent Units of Production - FIFO
	Units	% Materials	EUP- Materials	% Conversion	EUP-Conversion
Total units accounted for		100%
Units in ending work in process		80%
Equivalent units of production	0

The production department had $1,434,675 of direct materials and $1,002,573 of conversion costs charged to it during April. Also, its beginning inventory of $287,867 consists of $222,485 of direct materials cost and $65,382 of conversion costs.

Using the FIFO method, prepare the direct materials cost and the conversion cost per equivalent unit and assign April's costs to the department’s output. (Round "Cost per EUP" to 2 decimal places.)
  

Equivalent Units of Production (EUP)- FIFO Method
	Units	% Materials	EUP- Materials	% Conversion	EUP-Conversion
Equivalent units of production	0
Cost per Equivalent Unit of Production			Materials		Conversion
Total costs		Costs		Costs
÷ Equivalent units of production		EUP	0	EUP	0
Cost per equivalent unit of production (rounded to 2 decimals)			0		0
Total Costs to Account for:
Total costs to account for:	$0.00
Total costs accounted for
* Difference due to rounding cost/unit	$0.00
Assignment of Costs to Output of Department
Cost of 81,000 units from beginning inventory
Beginning inventory
	EUP	Cost per EUP	Total cost
Materials to complete
Conversion to complete
Total costs to complete
Total cost of 81,000 units in beginning inventory				$0.00
Cost of units started and completed this period	EUP	Cost per EUP	Total cost
Direct materials		$0.00	$0.00
Conversion costs		$0.00	0.00
Total cost of 324,000 units started and completed
Total cost of 405,000 units transferred out
Costs of units in ending inventory	EUP	Cost per EUP	Total cost
Direct materials		$0.00	$0.00
Conversion costs		$0.00	0.00
Total cost of 103,000 units in ending inventory
Total costs assigned

Answer 1

Equivalent Units:
			UNITS	Material Cost		Conversion
				% Completion	Units	% Completion	Units
Units completed from Beg. WIP			81000	35%	28,350	65%	52,650
Units started and completed			324000	100%	324,000	100%	324,000
Ending Work in Process			103000	80%	82,400	30%	30,900
Total Equivalent units					434,750		407,550
COST PER EQUIVALENT UNIT:
				Material		Conversion
Total cost added during the year				1,434,675		1,002,573
Equivalent Units				434,750		407,550
Cost per Equivalent unit				3.3		2.46
TOTAL COST TO ACCOUNT FOR:
Cost of Beginning Inventory				287,867
Current cost added in the process
Material				1434675
Conversion				1002573
Total cost to account for:				2725115
Total cost accounted for				2725115
Differecnce due to rounding off				0
TOTAL COST ACCOUNTED FOR:
Units Completed from Beginning WIP (81000 units)
				Equivalent unit	Cost per EU	Total Cost
Beginning Cost						287867
Material				28,350	3.3	93555
Conversion Cost				52,650	2.46	129519
Cost of units completed from Beg WIP							510941
Units started and Transferred out (324000 units)
				Equivalent unit	Cost per EU	Total Cost
Material				324,000	3.3	1069200
Conversion Cost				324,000	2.46	797040
Total Cost of Units started and completed:							1866240
Total cost of 405,000 units completed							2377181
Ending Work in process (103,000 units)
				Equivalent unit	Cost per EU	Total Cost
Material				82,400	3.3	271920
Conversison Cost				30,900	2.46	76014
Total cost of Ending Work in process:							347934
Total cost assigned							2725115