Question

During April, the first production department of a process manufacturing system completed its work on 305,000 units of a product and transferred them to the next department. Of these transferred units, 61,000 were in process in the production department at the beginning of April and 244,000 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, 83,000 additional units were in process in the production department and were 85% complete with respect to materials and 35% complete with respect to conversion.

The production department had $779,288 of direct materials and $659,797 of conversion costs charged to it during April. Also, its beginning inventory of $163,740 consists of $122,032 of direct materials cost and $41,708 of conversion costs.

1. Compute the direct materials cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.)
2. Compute the conversion cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.)
3. Using the FIFO method, assign April’s costs to the department’s output—specifically, its units transferred to the next department and its ending work in process inventory. (Round "Cost per EUP" to 2 decimal places.)
  

Required 1. and 2. 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 Required 3. Assignment of Costs to Output of Department Cost of 61,000 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 61,000 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 244,000 units started and completed Total cost of 305,000 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 83,000 units in ending inventory Total costs assigned

Answer 1

• 1 and 2

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	83,000	85.0%	70,550	35.0%	29,050
Units STARTED & COMPLETED	244,000	100%	244,000	100%	244,000
Units of beginning WIP	61,000	35.00%	21,350	65%	39,650
Equivalent Units of Production			335,900		312,700
COST per EUP			Material		Conversion
Cost incurred this period			$       779,288.00		$                  659,797.00
Total Costs		Costs	$       779,288.00	Costs	$                  659,797.00
Equivalent units of production		EUP	335,900	EUP	312,700
Cost per EUP			$                2.3200		$                          2.1100

Total Costs to Account for:
Beginning Inventory - Direct Material cost	$                  122,032.00
Beginning Inventory - Conversion cost	$                    41,708.00
Cost incurred suring the period - Direct material cost	$                  779,288.00
Cost incurred suring the period - Conversion cost	$                  659,797.00
Total costs to account for:	$              1,602,825.00
Total costs accounted for	$              1,602,825.00
Difference due to rounding cost/unit	$                                   -

• [3]

COST ASSIGNMENT & RECONCILIATION
Cost Transferred out:	EUP	Cost per EUP	Total Cost
Cost of Beginning WIP			163,740.00
Cost to complete beginning WIP-
Materials to complete	21,350.00	2.32	49,532.00
Conversion to complete	39,650.00	2.11	83,661.50
Total costs to complete			$ 133193.50
Total cost of 61,000 units in beginning inventory				$ 296,933.50
Cost of Units started & completed this period:	EUP	Cost per EUP	Total Cost
- Direct Materials	244,000.00	2.32	566,080.00
- Conversion	244,000.00	2.11	514,840.00
Total cost of 244,000 units started and completed				1,080,920.00
Total cost of 305,000 units transferred out				1,377,853.50
Costs of Ending WIP:	EUP	Cost per EUP	Total Cost
- Direct Materials	70,550	$                              2.32	$       163,676.00
- Conversion	29,050	$                              2.11	$          61,295.50
Total cost of ending WIP				$             224,971.50
Total costs accounted for				$         1,602,825.00