Question

Mora Company has the following production data for March: no beginning work in process, 28,600 units started and completed, and 4,700 units in ending work in process that are 100% complete for materials and 40% complete for conversion costs. Mora uses the FIFO method to calculate equivalent units. Unit materials cost is $6 and unit conversion cost is $12. The total costs to be assigned are $565,560. Prepare the cost section of the production cost report for Mora Company.

Answer 1

• Cost section would include the Cost allocated to Ending WIp and units completed.The calculation is shown below:

Cost of Units started & completed this period:	EUP	Cost per EUP	Total Cost
- Direct Materials	28,600	$                              6.00	$       171,600.00
- Conversion	28,600	$                            12.00	$       343,200.00
Total costs started & Completed this period			$       514,800.00
Total cost of work finished this period				$             514,800.00

Costs of Ending WIP:	EUP	Cost per EUP	Total Cost
- Direct Materials	4,700	$                              6.00	$          28,200.00
- Conversion	1,880	$                            12.00	$          22,560.00
Total cost of ending WIP				$               50,760.00

Cost of Units started & completed this period:
Total cost of work finished this period	$             514,800.00
Costs of Ending WIP:
Total cost of ending WIP	$               50,760.00
Total costs accounted for	$             565,560.00

--Working

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	4,700	100.0%	4,700	40.0%	1,880
Units STARTED & COMPLETED	28,600	100%	28,600	100%	28,600
Units of beginning WIP	-	0.00%	-	80.00%	-
Equivalent Units of Production			33,300		30,480