Question

Calculate Equivalent Units, Unit Costs, and Transferred Costs--FIFO Method Kipling Manufacturing, Inc., operates a plant that produces its own regionally marketed Super Salad Dressing The dressing is produced in two processes blending and bottling in the Blending Department all materials are added at the beginning of the process and labor and overhead are incurred evenly throughout the process, Kipling uses the FIFO method. The Work in Process --Blending Department account for January 2016 follows: Work in Process Blending Department January Inventory 4.000 gallons 75 processed $120.000 Transferred to Department 70.000 January has Derect ma i Ove labor 661.500 Manufacturing overhead 80.500 nary t ry to con Calculate the following amounts for the Blending Department a Number of units in the January 31 inventory b. Equivalent units for materials and conversion costs. January cost per equivalent unit for materials and conversion costs. d. Cost of the units transferred to the Botting Department e Cost of the incomplete units in the January 31 inventory Round average cost per equivalent unit to two decimal places applicable. Round other answers to the nearest whole number, when appropriate Kipling Manufacturing Inc. Blanding Department Flow of Units and Equivalent Units Calculation, jarwary 2016 Igualart Units

Answer 1

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Kipling Manufacturing					Started and completed in January
Cost of Production Report-Blending Department					Goods finished in January-	70,000.00
For the Month Ended January 31		Equivalent Units		Less: Opening work in process	4,000.00
Unit information	Physical Units	Materials	Conversion		Started and completed in January	66,000.00	B
Units charged to production:
Inventory in process January 1	4,000.00
Received from materials storeroom	71,000.00
Total units accounted for by the Blending Department	75,000.00
Units to be assigned costs:
Inventory in process January 1	4,000.00	-	1,000.00
Started and completed in January	66,000.00	66,000.00	66,000.00
Transferred to Bottling Department in January	70,000.00	66,000.00	67,000.00
Inventory in process, January 31	5,000.00	5,000.00	3,000.00		This is answer a.
Total units to be assigned costs:	75,000.00	71,000.00	70,000.00		This is answer b.
Cost Information				Total
Costs per equivalent unit
Total costs for January in Blending Department		1,704,000.00	1,470,000.00
Total equivalent units		71,000.00	70,000.00
Cost per equivalent unit		24.00	21.00		This is answer c.
Costs assigned to production:
Inventory in process, January 1				120,000.00
Costs incurred in January		1,704,000.00	1,470,000.00	3,174,000.00
Total costs accounted for by the Blending Department				3,294,000.00
Costs allocated to completed and partially completed units
Inventory in process, January 1 balance				120,000.00
To complete inventory in process, January 1		-	21,000.00	21,000.00
Cost of completed January 1 work in process				141,000.00
Started and completed in January		1,584,000.00	1,386,000.00	2,970,000.00
Transferred to Bottling Department in January				3,111,000.00	This is answer d.
Inventory in process, January 31		120,000.00	63,000.00	183,000.00	This is answer e.
Total costs assigned by the Blending Department				3,294,000.00