Question

Exercise 8-29 (Static) Compute Costs per Equivalent Unit: FIFO Method (LO 8-5)

The following information pertains to the Moline Facility for the month of May (all materials are added at the beginning of the process):

	Units	Material Costs
Beginning work in process	54,000	$	148,500
Started in May	144,000		475,200
Units completed	153,000
Ending work in process	45,000

Required:

Compute the cost per equivalent unit for materials using the FIFO method. (Round "Cost per equivalent unit" answer to 2 decimal places.)

Exercise 8-29 (Static) Compute Costs per Equivalent Unit: FIFO Method (LO 8-5)

The following information pertains to the Moline Facility for the month of May (all materials are added at the beginning of the process):

	Units	Material Costs
Beginning work in process	54,000	$	148,500
Started in May	144,000		475,200
Units completed	153,000
Ending work in process	45,000

Required:

Compute the cost per equivalent unit for materials using the FIFO method. (Round "Cost per equivalent unit" answer to 2 decimal places.)

	Total costs to be accounted for Cost per equivalent unit

Answer 1

Total cost to account for = $623,700

Cost per Equivalent unit= $3.30

Working

	Material
Cost incurred in Current Period	$ 475,200
Total Equivalent Units	1,44,000
Cost per Equivalent Units	$ 3.30

.

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material		Material
Beginning WIP	54,000	100%		0%
Units introduced	1,44,000
Total units to be accounted for	1,98,000
Completed and Transferred unit	1,53,000	0%		100%
Ending WIP	45,000	0%		100%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material
Units Transferred:		% completed this period	Equivalent Units
From WIP	54,000	0%	-
From units started/Introduced	99,000	100%	99,000
Total	1,53,000		99,000
	Total Units	Material
Ending WIP		% completed this period	Equivalent Units
Total	45,000	100%	45,000
Total EUP	1,98,000		1,44,000