Question

Help Sa- + 2 of 2 Required information Problem 16-6AA FIFO: Costs per equivalent unit; costs assigned to products LO C2, C4 (The following information applies to the questions displayed below) QualCo manufactures a single product in two departments: Cutting and Assembly. During May, the Cutting department completed a number of units of a product and transferred them to Assembly of these transferred units, 38,400 were in process in the Cutting department at the beginning of May and 159,500 were started and completed in May. May's Cutting department beginning inventory units were 70% complete with respect to materials and 30% complete with respect to conversion. At the end of May, 52,200 additional units were in process in the Cutting department and were 70% complete with respect to materials and 25% complete with respect to conversion. The Cutting department had $518,900 of direct materials and $478,632 of conversion cost charged to it during May. Its beginning inventory included $74,975 of direct materials cost and $29,393 of conversion cost. kipped eBook Print erences Problem 16-6AA Part 2, 3 and 4

Answer 1

Equivalent units of production (EUP)- FIFO method

	Units	% Materials	EUP - Materials	% Conversion	EUP - Conversion
Beginning work in process Inventory- units	38,400	70%	26,880	30%	11,520
Units started & completed	159,500	100%	159,500	100%	159,500
Ending Work-in-process- units	52,200	70%	36,540	25%	13,050
Total units	250,100		222,920		178,070

Cost per equivalent unit of production		Materials		Conversion
Cost incurred this period		$518,900		$478,632
Total costs	Costs	$518,900	Costs	$478,632
÷ Equivalent unit of production	EUP	222,920	EUP	178,070
Cost per equivalent unit		$2.32		$2.68

Total cost accounted for

Beginning inventory cost:				$104,368
Cost to complete units in beginning inventory:	EUP	Cost per EUP	Total cost
Direct materials	26,880	$2.32	$62,362
Conversion	11,520	$2.68	$30,874
Total cost to complete begining Inventory				$93,236
Cost of units started & completed:
Direct materials	159,500	$2.32	$370,040
Conversion	159,500	$2.68	$427,460
Total cost of units started and completed				$797,500
Total cost of units transferred				$995,104
Cost of Ending Work-in-process:
Direct materials	36,540	$2.32	$84,773
Conversion	13,050	$2.68	$34,974
Total cost of Ending Work-in-process				$119,747
Total costs account for				$875,357

​​​​​​* Beginning inventory cost = $ 74,975+$29,393 =$104,368.

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