Question

The e embly division of Marzollo Time Pieces, Inc. uses the FIFO method of process costing. Consider the following data for the month of May 2017 ck the icon to view the data.) (Click the icon to view the equivalent unit computation) S Requirement a rize the total costs to account for calculate the cost per equivalent unit for direct matenals and conversion costs, and assign costs to units completed (a Ir arred out) and to units in ending work in process. by summarizing the total costs to account for Total Direct Materials Conversion Costs Production Costs ork in process, beginning Total costs to account for Next, calculate cost per equivalent unit for direct materials and conversion costs Direct Conversion Materials Costs Divide by Cost per equivalent unit Choose from any list or enter any number in the input fields and then continue to the next question

Answer 1

Answer

1. Cost to be accounted for Total Production Direct Conversion Quantities Materials Cost cost Work in progress, beginning Started in production 49,01,600 36,90,000 12,11,600 2. Equivalent Units of production (EUP) - Weightage Average Method Production Cost Report Quantities Units % Material EUP-Materials % Conversion EUP-Conversion Work in progress, May 1 110 30% 33 50% 55 Started and completed 100% 355 355 100% 355 Work in progress, May 31 160 65% 104 35% 56 Total Units (A) 625 492 466 Note 1 Started and completed Total tranfereed to next department - Work in progress, May 1 465 units 110 Units 355 Units Note 2 Equivalent Unit Conversion Cost Beginning Work in progress 110 units x 30% ( 100% -70% complete 33 Note 3 Equivalent Unit Conversion Cost Beginning Work in progress 50% ( 100% - 50 % complete 110 units 55

3. Cost per equivalent unit of production Costs Costs Materials Conversion Costs per equivalent unit Cost added dusing May $36,90,000 $12,11,600 Total cost (A) $36,90,000 $12,11,600 Total Equivalent units (B) 492 466 Cost per Equivalent Unit (A/B) 7,500.00 2,600.00 4. Cost of goods completed and transferred out during may Cost per Particular EUP EUP Total Cost Cost of Transferred Units $7,500.00 Direct Material 388 29,10,000 $2,600.00 Conversion 410 10,66,000 Total Cost transferred out 39,76,000 5. Cost of Work in progress at 31 May Particular Equivalent Units Cost per EUP Total Cost Ending work in progress $7,500.00 Direct Material 104 $7,80,000 Conversion $2,600.00 56 $1,45,600 Total Cost of ending work in process $9,25,600