Question

Required information Problem 16-7AA FIFO: Process cost summary, equivalent units, cost estimates LO C2, C3, C4, P4 (The following information applies to the questions displayed below.) Dengo Co. makes a trail mix in two departments: roasting and blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company uses the FIFO method of process costing. During October, the roasting department completed and transferred 22,800 units to the blending department. Of the units completed, 3,300 were from beginning inventory and the remaining 19,500 were started and completed during the month. Beginning work in process was 100% complete with respect to direct materials and 30% complete with respect to conversion. The company has 2,700 units (100% complete with respect to direct materials and 70% complete with respect to conversion) in process at month-end. Information on the roasting department's costs of beginning work in process inventory and costs added during the month follows. Cost Of beginning work in process inventory Added during the month Direct Materials Conversion $ 10,200 $ 92,925 261,960 948,000

Answer 1

Answer

Costs Charged to Production:
Cost of beginning WIP	$                     103,125.00
Costs incurred this period	$                 1,209,960.00
Total Cost to account for	$                 1,313,085.00
Total costs accounted for	$                 1,313,085.00
Difference due to rounding cost/unit	$                                      -
Units Reconciliation
Units to account for:
Beginning WIP	3,300
Units started this period	22,200
Total Units to account for	25,500
Total Units accounted for:
Completed & Transferred out	22,800
Ending WIP	2,700
Total Units accounted for	25,500

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	2,700	100.0%	2,700	70.0%	1,890
Units STARTED & COMPLETED	19,500	100%	19,500	100%	19,500
Units of beginning WIP	3,300	0.00%	-	70%	2,310
Equivalent Units of Production			22,200		23,700
COST per EUP			Material		Conversion
Cost incurred this period			$       261,960.00		$                  948,000.00
Total Costs		Costs	$       261,960.00	Costs	$                  948,000.00
Equivalent units of production		EUP	22,200	EUP	23,700
Cost per EUP			$           11.80000		$                        40.0000

COST ASSIGNMENT & RECONCILIATION
Cost Transferred out:	EUP	Cost per EUP	Total Cost
Cost of Beginning WIP			103,125.00
Cost to complete beginning WIP-
- Direct Materials	-	11.80	-
- Conversion	2,310.00	40.00	92,400.00
Total cost to complete beginning WIP			195,525.00
Cost of Units started & completed this period:	EUP	Cost per EUP	Total Cost
- Direct Materials	19,500.00	11.80	230,100.00
- Conversion	19,500.00	40.00	780,000.00
Total costs started & Completed this period			1,010,100.00
Total cost of work finished this period				1,205,625.00
Costs of Ending WIP:	EUP	Cost per EUP	Total Cost
- Direct Materials	2,700	$                            11.80	$          31,860.00
- Conversion	1,890	$                            40.00	$          75,600.00
Total cost of ending WIP				$             107,460.00
Total costs accounted for				$         1,313,085.00