Question

Glencove Co. makes one model of radar gun used by law enforcement officers. All direct materials are added at the beginning of the manufacturing process. Information for the month of September follows:

	Units	Costs
Beginning work in process (40% complete)	?
Direct materials		$	1,339,500
Conversion cost			628,800
Total cost of beginning work in process		$	1,968,300
Number of units started	36,700
Number of units completed and transferred to finished goods	35,100
Ending work in process (75% complete)	22,150
Current period costs
Direct materials		$	2,405,400
Conversion cost			1,269,500
Total current period costs		$	3,674,900

Required:

1. Using FIFO method of process costing, complete each of the following steps:

a. Reconcile the number of physical units worked on during the period.

b. Calculate the number of equivalent units.

d. Reconcile the total cost of work in process.

Reg 1A Req 1B Reg 10 Reg 10 Using FIFO method of process costing, reconcile the number of physical units worked on during the period. Physical Units Physical Units Units Completed Beginning Units Units Started Ending Units Total Units Total Units 0 Reg 1A Reg 1B Reg 1C Reg 1D Using FIFO method of process costing, calculate the number of equivalent units. (Round your final answer to the nearest whole unit.) Equivalent Units Direct Materials Conversion Physical Units 14,550 14,550 14,550 Beginning Inventory Started and Completed Ending Inventory Total 14.550 14.550 14.550 Req 10 > < Req1A Reg 1A Reg 1B Req 1C Reg 1D Using FIFO method of process costing, reconcile the total cost of work in process. (Use Cost per Equivalent Unit rounded to 5 decimal places and round your final answers to the nearest whole dollar amount.) Current Period Costs Direct Materials Conversion Prior Period Costs Total Cost Beginning Inventory Started and Completed Ending Inventory Total Cost Accounted for S0S0S0S Req1C Req1D >

Answer 1

a]		Physical Units			Physical Units
	Beginning units	20550		Units completed	35100
		[57250-36700]
	Units started	36700		Ending units	22150
	Total units	57250		Total units	57250
b]		Physical Units		Equivalent Units
				Materials	Conversion
	Beginning inventory	20550		0	12330
	Started & completed	14550		14550	14550
	Ending inventory	22150		22150	16613
	Total	57250		36700	43493	Total Cost
c]	Costs incurred during the period			$            24,05,400	$       12,69,500	$ 36,74,900
	Cost per EUP			$             65.54223	$         29.18861
				Current Period Costs
		Prior Period Costs		Direct Materials	Conversion	Total Cost
	Beginning inventory	$      19,68,300		$                           -	$          3,59,896	$ 23,28,196
	Started & completed	$                     -		$              9,53,639	$          4,24,694	$ 13,78,334
	Ending inventory	$                     -		$            14,51,760	$          4,84,910	$ 19,36,671
	Total	$      19,68,300		$            24,05,400	$       12,69,500	$ 56,43,200