Question
In: Accounting
Easy Inc. uses the FIFO method in its process costing system. The following data concern the...
Easy Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company’s first processing department for a recent month.
| Work in process, beginning: | |||
| Units in process | 1,400 | ||
| Percent complete with respect to materials | 90 | % | |
| Percent complete with respect to conversion | 10 | % | |
| Costs in the beginning inventory: | |||
| Materials cost | $ | 1,910 | |
| Conversion cost | $ | 1,502 | |
| Units started into production during the month | 24,600 | ||
| Units completed and transferred out | 24,700 | ||
| Costs added to production during the month: | |||
| Materials cost | $ | 71,821 | |
| Conversion cost | $ | 543,448 | |
| Work in process, ending: | |||
| Units in process | 1,300 | ||
| Percent complete with respect to materials | 70 | % | |
| Percent complete with respect to conversion | 70 | % | |
Required:
Using the FIFO method:
a. Determine the equivalent units of production for materials and conversion costs.
b. Determine the cost per equivalent unit for materials and conversion costs.
c. Determine the cost of ending work in process inventory.
d. Determine the cost of units transferred out of the department during the month.
Solutions
Expert Solution
a. Determine the equivalent units of production for materials and conversion costs.
| Actual | Material | Conversion | |||
| Units | % | Units | % | Units | |
| Beginning WIP | 1400 | 10 | 140 | 90 | 1260 |
| Units started and completed | 23300 | 100 | 23300 | 100 | 23300 |
| Ending WIP | 1300 | 70 | 910 | 70 | 910 |
| Equivalent Units | 24350 | 25470 | |||
b. Determine the cost per equivalent unit for materials and conversion costs.
| Cost (current month only) | 71821 | 543448 | |||
| Equivalent Units | 24350 | 25470 | |||
| Cost per Unit of EUP | 2.9495 | 21.3368 |
c. Determine the cost of ending work in process inventory.
| Cost of Ending WIP Inventory | EU | Cost / EUP | Amount |
| Material | 910 | 2.9495 | 2684.045 |
| Conversion cost | 910 | 21.3368 | 19416.488 |
| 22101 |
d. Determine the cost of units transferred out of the department during the month.
| Cost of Units transferred out | |||
| Beginning WIP | |||
| Previous cost | 3412 | ||
| Materials | 140 | 2.9495 | 412.93 |
| Conversion | 1260 | 21.3368 | 26884.368 |
| Total of Beginning WIP | 30709.298 | ||
| Units started and completed | + | ||
| Materials | 23300 | 2.9495 | 68723.35 |
| Conversion | 23300 | 21.3368 | 497147.44 |
| Cost of units transfered out | 596580 |
ekkarill92 answered 10 months agoRelated Solutions
Easy Inc. uses the FIFO method in its process costing system. The following data concern the...
Easy Inc. uses the FIFO method in its process costing system.
The following data concern the operations of the company’s first
processing department for a recent month.
Work in process, beginning:
Units in process
1,300
Percent complete with respect to materials
90
%
Percent complete with respect to conversion
10
%
Costs in the beginning inventory:
Materials cost
$
1,894
Conversion cost
$
1,486
Units started into production during the month
24,400
Units completed and transferred out
24,500
Costs added...
Easy Inc. uses the FIFO method in its process costing system. The following data concern the...
Easy Inc. uses the FIFO method in its process costing system.
The following data concern the operations of the company’s first
processing department for a recent month.
Work in process, beginning:
Units in process
1,300
Percent complete with respect to materials
90
%
Percent complete with respect to conversion
10
%
Costs in the beginning inventory:
Materials cost
$
1,894
Conversion cost
$
1,486
Units started into production during the month
24,400
Units completed and transferred out
24,500
Costs added...
Easy Inc. uses the FIFO method in its process costing system. The following data concern the...
Easy Inc. uses the FIFO method in its process costing system.
The following data concern the operations of the company’s first
processing department for a recent month.
Work in process, beginning:
Units in process
1,600
Percent complete with respect to materials
90
%
Percent complete with respect to conversion
10
%
Costs in the beginning inventory:
Materials cost
$
1,942
Conversion cost
$
1,534
Units started into production during the month
25,000
Units completed and transferred out
25,100
Costs added...
Easy Inc. uses the FIFO method in its process costing system. The following data concern the...
Easy Inc. uses the FIFO method in its process costing system.
The following data concern the operations of the company’s first
processing department for a recent month. Work in process,
beginning: Units in process 1,250 Percent complete with respect to
materials 90 % Percent complete with respect to conversion 10 %
Costs in the beginning inventory: Materials cost $ 1,886 Conversion
cost $ 1,478 Units started into production during the month 24,300
Units completed and transferred out 24,400 Costs added...
Daosta Inc. uses the FIFO method in its process costing system. The following data concern the...
Daosta Inc. uses the FIFO method in its process costing system.
The following data concern the operations of the company's first
processing department for a recent month.
Work in process, beginning:
Units in process
900
Percent complete with respect to materials
40
%
Percent complete with respect to conversion
20
%
Costs in the beginning inventory:
Materials cost
$
530
Conversion cost
$
2108
Units started into production during the month
16,000
Units completed and transferred out
16,000
Costs added...
Daosta Inc. uses the FIFO method in its process costing system. The following data concern the...
Daosta Inc. uses the FIFO method in its process costing system.
The following data concern the op... Daosta Inc. uses the FIFO
method in its process costing system. The following data concern
the operations of the company's first processing department for a
recent month. Work in process, beginning: Units in process 900
Percent complete with respect to materials 40 % Percent complete
with respect to conversion 20 % Costs in the beginning inventory:
Materials cost $ 530 Conversion cost $...
FIFO Jarvene Corporation uses the FIFO method in its process costing system. The following data are...
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
completion of ending inventory 70% 50%
________________________________________ The cost of beginning
inventory according to the company’s costing...
BMG Inc. uses the weighted-average method in its process costing system. The following data concern the...
BMG Inc. uses the weighted-average method in its process costing
system. The following data concern the operations of the company's
first processing department for a recent month.
Work in process, beginning:
Units in process
........................................................... 200
Stage of completion with respect to materials ............
60%
Stage of completion with respect to conversion.......... 20%
Costs in the beginning inventory:
Materials cost
...........................................................
$756
Conversion cost
........................................................ $1,508
Units started into production during the month ..............
18,000
Units completed and transferred out...
Cleveland Inc. uses the weighted-average method in its process costing system. The following data concern the...
Cleveland Inc. uses the weighted-average method in its process
costing system. The following data concern the operations of the
company's first processing department - Cutting - for a recent
month.
Work-in-process, beginning:
Units in process
300
Percent complete with respect to materials
80%
Percent complete with respect to
conversion
70%
Costs in the beginning inventory:
Materials cost
$1,368
Conversion cost
$8,064
Units started into production during the month
11,000
Units completed and transferred out
11,000
Costs added to production during...
Bachelet Inc. uses the weighted-average method in its process costing system. The following data concern the...
Bachelet Inc. uses the weighted-average method in its process
costing system. The following data concern the operations of the
company’s first processing department for a recent month.
Work in process, beginning:
Units in process
400
Percent complete with respect to
materials
90
%
Percent complete with respect to
conversion
40
%
Costs in the beginning
inventory:
Materials cost
$
756
Conversion cost
$
4,448
Units started into production
during the month
13,000
Units completed and transferred
out
13,000
Costs added...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Describe in detail two modern applications of electromagnets. Do these electromagnets draw a large amount of...
- Refunding Analysis Mullet Technologies is considering whether or not to refund a $250 million, 13% coupon,...
- in java What object is passed to the start method in a JavaFX program? What should...
- QUESTION ONE Briefly explain the following types of errors: (i) Error of commission &n
- List the basic principles of the distillation tower at least 4 principal and why there are...
- Imagine you're a business owner: If waiting in lines is a truly inescapble event for your...
- A piston-cylinder device initially contains 0.20(kg) of steam at 3.5(MPa), 300(C). The steam loses heat to...
ADVERTISEMENT