Question

Data concerning a recent period’s activity in the Assembly Department, the first processing department in a company that uses the FIFO method in its process costing, appear below:

	Materials		Conversion
Cost of work in process inventory at the beginning of the period	$	3,500	$	670
Equivalent units in the ending work in process inventory		420		200
Equivalent units required to complete the beginning work in process inventory		510		1,230
Cost per equivalent unit for the period	$	1.70	$	0.70

A total of 26,100 units were completed and transferred to the next processing department during the period. Beginning work in process inventory consisted of 1,900 units and ending work in process inventory consisted of 1,700 units.

Required:

1. Compute the Assembly Department's cost of ending work in process inventory for materials, conversion, and in total for the period.

2. Compute the Assembly Department's cost of units transferred out to the next department for materials, conversion, and in total for the period.

	Materials Conversion Total 1. Cost of ending work in process inventory 2. Cost of the units transferred to the next department

Clonex Labs, Inc., uses the FIFO method in its process costing system. The following data are available for one department for October:

		Percent Completed
	Units	Materials		Conversion
Work in process, October 1	31,000	64	%	33	%
Work in process, October 31	14,000	81	%	43	%

The department started 175,000 units into production during the month and transferred 192,000 completed units to the next department.

Required:

Compute the equivalent units of production for materials and conversion for October.

	Materials Conversion Equivalent units of production

Answer 1

Answer with working notes is given below