Question

E18-24 (book/static) Question Help Consider the following data for November 2017 from Maclean Manufacturing Company, which makes perts and uses a process costing system. All direct materials are added at the beginning of the process and conversion costs are added evenly during the process Spoilage is t ed upon inspection at the completion of the process Spoiled units are disposed of t h e disposal value MacLean Manufacturing Company the FIFO method of process costing Tack the icon whet) Click the icon to the equivalent computation) Read the require Data Table Begin by summaring the tal costs to account for Direct Conversion Physical Units (Pennants) Direct Material Conversion Costs Good Gored and transferred out 8.800 Total co u rt Work in pross, November 30 Total added during November 2017 $10.302 $30056 i Duta Table Direct Conversion Good completed and transferred out during current period From beginning work in process S ed and completed 7450 Abnormal spolage Choose from any or entry Check Ave 4 Work done in current period only

Answer 1

Complete FIFO basis unit computation and cost derived - step by step to follow

	Physical Unit	Direct Material($)	Conversion cost($)	Total ($)
Work In process	1,350	966	711	1,677
( Nov)
Goods unit completed and Transferred	8,800
Normal Spoilage	80
AbNormal Spoilage	50
Work in Process	1,700
Total Cost added		10,302	30,055	40,357
Total Unit (a)	10,630

FIFO Method - Number of Units
	Physical Unit	Direct Material	Conversion cost
Work In process	1,350
( Start)
Added during the period	9,280
Total Unit ( a) - above
Less- Opening WIP
Total Number of Units	10,630
Allocation of Unit -% consider
Start WIP
Unit * (100%-45%)- Conversion	1,350		743
Unit -1350
45% - given in Question
Goods units Transferred
8800- 1350 ( cosnidered already)	7,450	7,450	7,450
(100% allocation)
Normal Spoilage	80	80	80
80*100% , 80*100%
AbNormal Spoilage	50	50	50
50*100% , 50*100%
Ending WIP	1,700	1,700	595
1700 Unit ( as above )
1700*100%- Material
1700*35%- Conversion
Total Number of Units	10,630
Equivalent unit		9,280	8,918

Cost- FIFO
	Direct Material($)	Conversion cost($)	Total Production cost($)	Source
Start of Cost	966	711	1,677	( as per Question)
Cost added	10,302	30,055	40,357	( as per Question)
Total Cost(a)	11,268	30,766	42,034
Number of Unit (b)	9,280	8,918		( as derived above)
Rate / per unit(a/b)	1.21	3.45		( Total cost/ Unit )
Assignement of cost
Cost completed and Transfer
7450 Unit	9,045.97	25,703.02	34,749	( derived -7450*rate per unit )
Closing WIP Unit(c)	1,700	595		( as derived above)
Rate / per unit(a/b)	1.21	3.45
WIP cost(c*b)	2,064	2,053	4,117
Abnormal + Normal Loss(d)	130	130		( as derived above)='80+50
Cost(d*b)	157.85	448.51	606	( derived)
Opneing Wip(e)
( conversioncost)		743		( as derived above)
Cost( e*b)		2,561.7	2,562	( derived)
Total Cost allocated			42,034
Allocated completed

All number back up - mentioned in Source file . Derived number based on Multiplication ( also highlighted as above like a*b , c*b etc)

Complete analysis of FIFO base of Inventory - allocation of Unit as well as allocation of cost derived step by step as above .