Question

CloverSweet Inc. manufactures a product that goes through two departments prior to completion. The information shown in the table below is available about work in the first department, the Mixing Department, during June:

				Percentage Complete
		Units		Materials			Conversion
Work in process, beginning		26,000			75	%		30	%
Started into production		484,000
Completed and transferred out		458,000
Work in process, ending		52,000			60	%		15	%

	Materials			Conversion
Work in process, beginning	$	24,500		$	29,500
Cost added during June	$	444,000		$	166,000

Required:

Assume that the company uses the FIFO method.

1. Determine the equivalent units for June for the first process.

2. Compute the costs per equivalent unit for June for the first process. (Round your answers to 3 decimal places.)

3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in June. (Round intermediate calculations to 3 decimal places.)

4. Prepare a report that reconciles the total costs assigned to the ending work in process inventory and the units transferred out with the costs in beginning inventory and costs added during the period. (Round intermediate calculations to 3 decimal places.)

Answer 1

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Part 1	Quantities			Equivalent Units
			Whole Units	Materials	Conversion Cost	Complete
	Units to be account for
	Work in Process, Beginning		26,000	6,500	18,200		75%	30%
	Units Started and Completed		484,000	484,000	484,000		100%	100%
	Work in Process, Ending		52,000	31,200	7,800		60%	15%
	Equivalent Units-Weighted Average		562,000	521,700	510,000
Part 2	Cost
				Materials	Convsersion Cost	Total
	Cost added during Period			$         444,000	$                 166,000	$             610,000
	Total Cost to account for			$         444,000	$                 166,000	$             610,000
	Equivalent Units			521,700	510,000
	Unit Cost	Total Cost/Equivalent Units		$              0.851	$                     0.325	$                  1.177
Part 3	Cost accounted for
	Work in Process, Ending		Material	Conversion	Total
	Equivalent Units		31,200	7,800
	Cost per Equivalent Unit		$           0.851	$              0.325
	-Total Cost Accounted For		$         26,553	$              2,539	$                   29,092
	Cost of Units Transferred out:
	Cost in Beginning WIP	A	$         24,500	$           29,500	$                   54,000
	Cost of Complete Beginning WIP:
	Equivalent Units-Beginning		6,500	18,200
	Cost per Equivalent Unit		$           0.851	$              0.325
	-Cost to Complete Beginning WIP	B	$           5,532	$              5,924	$                   11,456
	Cost of Units Started and Completed:
	Units Started and Completed		484,000	484,000
	Cost per Equivalent Unit		$           0.851	$              0.325
	-Cost of units started and Completed	C	$       411,915	$         157,537	$                 569,452
	Cost of Units Transferred out:	A+B+C			$                 634,908
	Total Cost	$29,092+$634,908			$                 664,000
Part 4	Reconcilliation
	Cost to be accounted for:
	Cost of beginning work in process		$       610,000
	Cost added to production during period
	Total Cost to be accounted for		$       610,000
	Cost accounted for as follows:
	Cost of ending work in process		$         29,092
	Cost of units transferred out		$       634,908
	Total Cost accounted for		$       664,000