Question

During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 64,000 were in process in the production department at the beginning of April and 250,000 were started and completed in April. April's beginning inventory units were 40% complete with respect to materials and 60% complete with respect to labor. At the end of April, 80,000 additional units were in process in the production department and were 70% complete with respect to materials and 70% complete with respect to labor. The production department had $935,000 of direct materials and $682,000 of direct labor cost charged to it during April. Also, its beginning inventory included $119,840 of direct materials cost and $49,890 of direct labor. 1. Using the FIFO method, compute the direct materials cost and the direct labor cost per equivalent unit for the department. (Due to rounding of cost per unit, the total costs accounted for in the cost summary may not equal to sum of all the costs given in the problem. Round your answers to 2 decimal places. Omit the "$" sign in your response.) Cost per equivalent unit Direct Materials EUP $ $ Direct Labor EUP 2. Using the FIFO method, assign April's costs to the department's output-specifically, its units transferred to finished goods and its ending goods in process inventory. (Due to rounding of cost per unit, the total costs accounted for in the cost summary may not equal to sum of all the costs given in the problem. Round your intermediate calculations and final answer to 2 decimal places. Omit the "$" sign in your response.) Total costs transferred out Total costs of ending goods in process Total cost

Answer 1

April Opening units Started 64,000 2,66,000 3,30,000 Completed units Closing WIP 2,50,000 80,000 3,30,000 Equivalent Productio Units Material Direct Labour Opening Units Started Ending WIP 64,000 1,86,000 80,000 25,600 1,86,000 56,000 38,400 1,86,000 56,000 3,30,000 2,67,600 2,80,400 Cost Cost per unit 9,35,000 3.49 6,82,000 2.43

2. Using the FIFO method, assign April's costs to the department's output - specifically, its units transferred to finished goods and its ending goods in process inventory. Direct Materials Direct Labor Costs of goods transferred out 10,54,840 7,31,890 17,86,730 Cost of beginning goods in process inventory Direct materials $ 1,19,840 Direct labor $ 49,890 1,69,730 Costs to complete beginning goods in process Direct materials 89,447 Direct labor 93,398 1,82,845 Total costs to complete Cost of units started and completed this period Direct materials 6,49,888 Direct labor 4,52,397 Total cost of units started and completed 11,02,284 Total costs of goods transferred out 12,85,129 Cost of ending goods in process inventory Direct materials Direct labor Total costs of ending goods in process 1,95,665 1,36,205 3,31,871 Total costs accounted for 16,17,000