Question

Jarvene Corporation uses the FIFO method in its process costing system. The following data are for the most recent month of operations in one of the company's processing departments: points 380 4,260 Units in beginning inventory Units started into production Units in ending inventory Units transferred to the next department 280 4,360 eBook Percentage completion of beginning inventory Percentage completion of ending inventory Materials Conversion 80% 20% 30% 90% Print The cost of beginning inventory according to the company's costing system was $7,877 of which $4,828 was for materials and the remainder was for conversion cost. The costs added during the month amounted to $182,376. The costs per equivalent unit for the month were: References Cost per equivalent unit Materials Conversion $18.00 $24.00 Required: 1. Compute the total cost per equivalent unit for the month. 2. Compute the equivalent units of material and conversion in the ending inventory. Compute the equivalent units of material and conversion that were required to complete the beginning inventory 4. Compute the number of units started and completed during the month. 5. Compute the cost of ending work in process inventory for materials, conversion, and in total for the month. 6. Compute the cost of the units transferred to the next department for materials, conversion, and in total for the month. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Compute the total cost per equivalent unit for the month. (Round your answer to 2 decimal places.) Total cost per equivalent unit Required 1 Required 2 >

Answer 1

1) Total cost per equivalent unit = 18+24 = 42

2) equivalent unit of ending inventory

	Material	Conversion
Equivalent unit	280*90% = 252	280*30% = 84

3) equivalent unit of Beginning inventory

	Material	Conversion
Equivalent unit	380*20% = 76	380*80% = 304

4) No of unit started and completed = 4360-380 = 3980

5) Cost of ending work in process

	Material	Conversion	Total
Cost of ending WIP	252*18 = 4536	84*24 = 2016	6552

6) Cost of unit transferred out

	Material	Conversion	Total
Cost of beginning WIP	4828+76*18 = 6196	3049+304*24 = 10345	16541
Cost of unit started and completed	71640	95520	167160
Total cost of unit transferred out	77836	105865	183701