Question

Landry Co. had the following information for the month of December. All direct materials were one hundred percent complete, and beginning materials cost $17,700.

Work in Process Inventory
Beginning balance @ 12/1: 320 units, 10% completed	$	21,000		Completed 1,000 units and transferred them to finished goods inventory	$	188,582
Direct materials		69,000
Direct labor		45,000
Overhead Property taxes		11,000
Depreciation		42,000
Utilities		26,000
Indirect labor		9,000
Ending balance @ 12/31: 380 units, 20% completed	$	34,418

Cost per equivalent unit for conversion under the FIFO method is calculated to be (rounded):

A. 97.404

B. 128.876

C. 65.094

D. 57.957

E. 127.395

Answer 1

1 1000 3 Number units of equivalent units 4 Units completed and transferred 5 Add: Ending inventory balance (380*100% materials) Less: Beginning inventory (320*100% materials) 7 Number of equivalent units (A) 8 Direct material cost (B) 9 Cost per equivalent units (B/A) 3801 320 6 1060 69000 65.094 10 65.094 Cost per equivalent unit for materials under the FIFO method is 12 13 Option (c) is correct 14 15 16