Question

WHY ARE THE ANSWERS ON MY SAMPLE QUESTION INCORRECT?

Qualco manufactures a single product in two departments: Cutting and Assembly. During May, the Cutting department completed a number of units of a product and transferred them to Assembly. Of these transferred units, 38,800 were in process in the Cutting department at the beginning of May and 163,500 were started and completed in May. May's Cutting department beginning inventory units were 70% complete with respect to materials and 30% complete with respect to conversion. At the end of May, 52,600 additional units were in process in the Cutting department and were 70% complete with respect to materials and 20% complete with respect to conversion. The Cutting department had $593,488 of direct materials and $472,773 of conversion cost charged to it during May. Its beginning inventory included $75,375 of direct materials cost and $29,793 of conversion cost. 2-4. Using the FIFO method, assign May's costs to the units transferred out and assign costs to its ending work in process inventory. (Round "Cost per EUP" to 2 decimal places.) Answer is not complete. % Conversion 70% 100% 20% EUP- Conversion 27,230 164,500 10,540 X 202,270 Conversion Costs EUP Equivalent units of production (EUP)- FIFO method Units % Materials EUP- Materials Beginning work in process inventory - units 202,300 30% 11,670 Units started and completed 52,600 100% 164,500 X Ending work in process - units 38,800 70% 36,890 Total units 293,700 213,060 Cost per equivalent unit of production Materials Costs incurred this period $ 617,874 Total costs Costs $ 617,874 + Equivalent units of production EUP 213,060 Cost per equivalent unit of production (rounded to 2 decimals) $ 2.90 Total costs accounted for: Beginning Inventory Cost: Cost to complete units in beginning Cost per EUP Total cost EUP inventory Direct materials 11,670 X $ 2.90 $ 33,843.00 Conversion 27,230 $ 2.40 65,352.00 Total cost to complete beginning inventory Cost of units started and completed EUP Cost per Total cost EUP Direct materials 164,500 $ 2.90 $ 477,050.00 Conversion 164,500 $ 2.40 394,800.00 Total cost of units started and completed 202,270 0.00 $ $ 105,368 X 99,195.00 871,850.00 Total cost of units transferred out 1,076,413.00 Costs of ending work in process EUP Cost per EUP Total cost Direct materials 36,890 X $ 10,540 Ⓡ$ 2.90 2.40 $ 106,981.00 25,296.00 Conversion Total cost of ending work in process 132,277.00 Total costs accounted for 1,208,690.00

Answer 1

Soltion:

Twr wucco TCU TV 20 Equivalent units of production (EUP) - FIFO method 21 22 20% 24 25 Units %Material EUP-Material % Conversion EUP- Conversion 38800 30% 11640 70% 27160 163500 100% 163500 100% 163500 52600 70% 36820 10520 211960 201180 Material Conversion Costs $593,488 Costs $472,773 EUP 211960 EUP 201180 $2.80 $2.35 29 27 28 29 30 $105,168 31 32 Beginning units completed this period Units Started and Completed units of Ending work in process Equivalent units of production Cost per EUP Costs incurred this period (Total Costs) /Equivalent units of Production Cost per Equivalent unit of Production Cost Assignment and Reconciliation Beginning Inventory Cost: Cost to Complete Beginning Inventory Direct materials Conversion Total Cost to complete Beginning Inventory Total Costs of units in Beginning Inventory Cost of units started and completed Direct Material Conversion Total Cost of units started and completed Total cost of units transferred out Cost of ending work in process Direct Material Conversion Total Ending work in process Total Costs accounted for EUP Cost per EUP 11640 $2.80 27160 $2.35 Total Cost $32,592 $63,826 34 35 $96,418 $201,586 36 37 38 39 40 EUP Cost per EUP 163500 163500 $2.35 $2.80 Total Cost $457,800 $384,225 $842,025 $1,043,611 42 43 EUP Cost per EUP 36820 $2.80 10520 $2.35 Total Cost $103,096 $24,722 45 $127,818 $1,171,429 46 47 Sheet146 (9) Sheet567 Sheet194 (5) Sheet568 Sheet569 Sheet566 Sheet571 SH