Question

Montreal Manufacturing Inc. has the following cost and production data for the month of April. Beginning WIP Started in production Completed production Ending WIP 16,900 units 101,500 90,400 28,000 The beginning inventory was 60% complete for conversion costs. The ending inventory was 40% complete for conversion costs. Materials are added at the beginning of the process. Costs pertaining to the month of April are as follows: Beginning inventory costs are: Materials Direct labour $63,600 21,600 16,800 Factory overhead Costs incurred during April include: Materials Direct labour $578,550 193,700 373,352 Factory overhead

Answer 1

Solution:

FIFO
Cost Charged to production
Total Cost of Beginning Work in process	$102,000
Total Costs incurred this period	$1,145,602
Total Cost to account for	$1,247,602
Total Cost Accounted for	$1,247,602
*Difference due to rounding cost/unit	$0
Unit Reconciliation
Units to account for:
Units in Beginning work in process	16900
Units Started this period	101500
Total Units to account for	118400
Total units Accounted for:
Units in Beginning work in process completed	16900
Units Started and Completed	73500
Units in ending work in process	28000
Total Units accounted for	118400
Equivalent units of production (EUP) - FIFO method
	Units	%Material	EUP-Material	% Conversion	EUP- Conversion
Beginning units completed this period (A)	16900	0%	0	40%	6760
Units Started and Completed(B)	73500	100%	73500	100%	73500
units of Ending work in process (D)	28000	100%	28000	40%	11200
Equivalent units of production (C+D)			101500		91460
Cost per EUP			Material		Conversion
Costs incurred this period (Total Costs)		Costs	$578,550	Costs	$567,052
/Equivalent units of Production		EUP	101500	EUP	91460
Cost per Equivalent unit of Production			$5.70		$6.20
Cost Assignment and Reconciliation
Beginning Inventory Cost:				$102,000
Cost to Complete Beginning Inventory	EUP	Cost per EUP	Total Cost
Direct materials	0	$5.70	$0
Conversion	6760	$6.20	$41,912
Total Cost to complete Beginning Inventory				$41,912
Total Costs of units in Beginning Inventory				$143,912
Cost of units started and completed	EUP	Cost per EUP	Total Cost
Direct Material	73500	$5.70	$418,950
Conversion	73500	$6.20	$455,700
Total Cost of units started and completed				$874,650
Total cost of units transferred out				$1,018,562
Cost of ending work in process	EUP	Cost per EUP	Total Cost
Direct Material	28000	$5.70	$159,600
Conversion	11200	$6.20	$69,440
Total Ending work in process				$229,040
Total Costs accounted for				$1,247,602