Question

Required information [The following information applies to the questions displayed below.] During April, the first production department of a process manufacturing system completed its work on 340,000 units of a product and transferred them to the next department. Of these transferred units, 68,000 were in process in the production department at the beginning of April and 272,000 were started and completed in April. April's beginning inventory units were 75% complete with respect to materials and 25% complete with respect to conversion. At the end of April, 90,000 additional units were in process in the production department and were 90% complete with respect to materials and 40% complete with respect to conversion. The production department had $1,006,400 of direct materials and $728,770 of conversion costs charged to it during April. Also, its beginning inventory of $174,580 consists of $151,350 of direct materials cost and $23,230 of conversion costs. 1. Compute the direct materials cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.) 2. Compute the conversion cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.) 3. Using the FIFO method, assign April's costs to the department's output-specifically, its units transferred to the next department and its ending work in process inventory. (Round "Cost per EUP" to 2 decimal places.) Required 1. and 2 Equivalent Units of Production (EUP)- FIFO Method Units % Materials EUP-Materials % Conversion EUP- Conversion Fauivalent units of production < Prev 4 of 9 Next >

Answer 1

Solution:

Equivalent units of production (EUP) - FIFO method
	Units	%Material	EUP-Material	% Conversion	EUP- Conversion
Beginning units completed this period (A)	68000	25%	17000	75%	51000
Units Started and Completed (B)	272000	100%	272000	100%	272000
units of Ending work in process (C)	90000	90%	81000	40%	36000
Equivalent units of production (A+B+C)			370000		359000
Cost per EUP			Material		Conversion
Costs incurred this period			$10,06,400		$7,28,770
Total Costs		Costs	$10,06,400	Costs	$7,28,770
/Equivalent units of Production		EUP	370000	EUP	359000
Cost per Equivalent unit of Production			$2.72		$2.03
Total Costs to Account for:
Direct materials - prior period	$1,51,350
Conversion costs - Prior period	$23,230
Direct materials - Current period	$10,06,400
Conversion costs - Current period	$7,28,770
Total Cost to account for	$19,09,750
Total Cost Accounted for	$19,09,750
*Difference due to rounding cost/unit	$0
Cost Assignment and Reconciliation
Cost of 68000 units from Beginning Inventory:
Beginning Inventory				$1,74,580
	EUP	Cost per EUP	Total Cost
Materials to complete	17000	$2.72	$46,240
Conversion to complete	51000	$2.03	$1,03,530
Total Costs to complete				$1,49,770
Total Costs of 68000 units in Beginning Inventory				$3,24,350
Cost of units started and completed this period:	EUP	Cost per EUP	Total Cost
Direct Material	272000	$2.72	$7,39,840
Conversion costs	272000	$2.03	$5,52,160
Total Cost of 272000 units started and completed				$12,92,000
Total cost of 340,000 units transferred out				$16,16,350
Cost of Units in ending inventory:	EUP	Cost per EUP	Total Cost
Direct Material	81000	$2.72	$2,20,320
Conversion costs	36000	$2.03	$73,080
Total Cost of 90,000 units in Ending inventory				$2,93,400
Total Costs assigned				$19,09,750