Question

Yarmouth Company produces a liquid solvent in two departments: Mixing and Finishing. Accounting records at Yarmouth show the following information for Finishing operations for February (no new material is added in the Finishing Department):

WIP inventory—Finishing
Beginning inventory (11,900 units, 20% complete with respect to Finishing costs)
Transferred-in costs (from Mixing)	$	150,070
Finishing conversion costs		8,675
Current work (101,800 units started)
Mixing costs		1,089,260
Finishing costs		619,264

The ending inventory has 15,900 units, which are 60 percent complete with respect to Finishing Department costs and 100 percent complete for Mixing Department costs.

Required:
a. Complete the production cost report using the FIFO method. (Round "Cost per equivalent unit" to 2 decimal places.)

Answer 1

	Physical Units	Prior Department	Department T
Flow of Units:
Units to be accounted for:
Beginning WIP inventory	11,900
Units started this period	101,800
Total Units to account for	113,700
Units accounted for:
Completed & Transferred out
From Beginning WIP Inventory	11,900
Prior Department		-
Department T			9,520
Started & Completed currently	85,900	85,900	85,900
Units in Ending WIP Inventory	15,900
Prior Department		15,900
Department T			9,540
Total units accounted for	113,700	101,800	104,960

	TOTAL	Prior Department	Department T
Flow of Costs:
Cost of be accounted for:
Costs in beginning WIP Inventory	$                     158,745.00	$                 150,070.00	$            8,675.00
Current Period Costs	$                 1,708,524.00	$             1,089,260.00	$       619,264.00
Total Cost to be accounted for	$                 1,867,269.00	$             1,239,330.00	$       627,939.00
Cost per Equivalent units
Prior Department		$                            10.70
Department T			$                    5.90
Costs accounted for:
Costs assigned to units transferred out:
Costs from beginning WIP Inventory	$                     158,745.00	$                 150,070.00	$            8,675.00
Current Costs added to complete beginning WIP Inventory	$                       56,168.00
Prior Department		$                                   -
Department T			$          56,168.00
Current Costs of units started and completed:	$                 1,425,940.00
Prior Department		$                 919,130.00
Department T			$       506,810.00
Total cost transferred out	$                 1,640,853.00	$             1,069,200.00	$       571,653.00
Cost of ending WIP Inventory	$                     226,416.00
Prior Department		$                 170,130.00
Department T			$          56,286.00
Total costs accounted for	$                 1,867,269.00	$             1,239,330.00	$       627,939.00