In: Accounting
1. Sonnikes Wedget maker uses a FIFO process costing system for its products. One product passes through two departments (molding and packaging) during production. The following activity took place in the molding department during October:
Units in beginning inventory 8,500
Units started this period 93,700
Units in ending inventory 7,600
The cost per equivalent unit of production are as follows:
Materials 9.00
Conversion 12.00
Raw material are added at the beginning of the process in the molding department. Beginning WIP (Oct. 1) was 70% complete with regards to conversation costs and had incurred $35,800 of cost last period. Ending WIP was 20% complete as to conversion on Oct. 31
a. Calculate the equivalent units of production for BOTH material and conversion.
b. Determine the cost of beginning inventory units when transferred to packaging.
c. Determine the cost of ending work in process inventory.