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, 60,000 were in process in the production department at the beginning of April and 240,000 were started and completed in April. April's beginning inventory units were 60 %complete with respect to materials and 40 %complete with respect to conversion. At the end of April, 82,000 additional units were in process in the production department and were 80 %complete with respect to materials and 30 %complete with respect to conversion.

The production department had $850,368 of direct materials and $649,296 of conversion costs charged to it during April. Also, its beginning inventory of $167,066 consists of $118,472 of direct materials cost and $48,594 of conversion costs.

Using the FIFO method, prepare the direct materials cost and the conversion cost per equivalent unit and assign April's costs to the department's output. (Round "Cost per EUP" to 2 decimal places.)

Answer 1

Equivalent units of production (EUP) - FIFO method
	Units	%Material	EUP-Material	% Conversion	EUP- Conversion
Beginning units completed this period (A)	60000	40%	24000	60%	36000
Units Started and Completed (B)	240000	100%	240000	100%	240000
units of Ending work in process (C)	82000	80%	65600	30%	24600
Equivalent units of production (A+B+C)			329600		300600
Cost per EUP			Material		Conversion
Costs incurred this period			$8,50,368		$6,49,296
Total Costs		Costs	$8,50,368	Costs	$6,49,296
/Equivalent units of Production		EUP	329600	EUP	300600
Cost per Equivalent unit of Production			$2.58		$2.16
Total Costs to Account for:
Direct materials - prior period	$1,18,472
Conversion costs - Prior period	$48,594
Direct materials - Current period	$8,50,368
Conversion costs - Current period	$6,49,296
Total Cost to account for	$16,66,730
Total Cost Accounted for	$16,66,730
*Difference due to rounding cost/unit	$0
Cost Assignment and Reconciliation
Cost of 60000 units from Beginning Inventory:
Beginning Inventory				$1,67,066
	EUP	Cost per EUP	Total Cost
Materials to complete	24000	$2.58	$61,920
Conversion to complete	36000	$2.16	$77,760
Total Costs to complete				$1,39,680
Total Costs of 60000 units in Beginning Inventory				$3,06,746
Cost of units started and completed this period:	EUP	Cost per EUP	Total Cost
Direct Material	240000	$2.58	$6,19,200
Conversion costs	240000	$2.16	$5,18,400
Total Cost of 240000 units started and completed				$11,37,600
Total cost of 300,000 units transferred out				$14,44,346
Cost of Units in ending inventory:	EUP	Cost per EUP	Total Cost
Direct Material	65600	$2.58	$1,69,248
Conversion costs	24600	$2.16	$53,136
Total Cost of 82,000 units in Ending inventory				$2,22,384
Total Costs assigned				$16,66,730