Question

Seved Ch20 Required information Use the following information for the Exercises below. (The following information applies to the questions displayed below! + 4 of 4 During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 60,000 were in process in the production department at the beginning of April and 240,000 were started and completed in April. April's beginning inventory units were 60% complete with respect to materials and 40% complete with respect to conversion. At the end of April, 82,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion 500 Exercise 20-11A FIFO: Costs assigned to output LO C4, P4 The production department had $850,368 of direct materials and $649.296 of conversion costs charged to it during April. Also, its beginning inventory of $167066 consists of $118.472 of direct materials cost and $48,594 of conversion costs. Using the FIFO method, prepare the direct materials cost and the conversion cost per equivalent unit and assign April's costs to the department's output. (Round "Cost per EUP" to 2 decimal places.) Equivalent Units of Production (EUP)- FIFO Method Units to complete beginning work in process Units started and completed Units in ending work in process Equivalent units of production Units %. Matenals EUP Materials % Conversion 60.000 40% 24,000 6096 240.000 € 100% 240.000 100% 82.000 809 6 5600* 30% SE382.000 329.600 EUP Conversion 3 6.000 240.000 24,600 300.600 Prey

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units					60,000
Add: Units Started in Process					322,000
Total Units to account for:					382,000
UNITS TO BE ACCOUNTED FOR:
Units completed from Beginning WIP					60,000
Units started and completed					240,000
Ending Work in Process					82,000
Total Units to be accounted for:					382,000
Equivalent Units:
			UNITS	Material Cost		Conversion
				% Completion	Units	% Completion	Units
Units completed from Beginning WIP			60000	40%	24,000	60%	36,000
Units started and completed			240000	100%	240,000	100%	240,000
Ending Work in Process			82000	80%	65,600	30%	24,600
Total Equivalent units			382000		329,600		300,600
TOTAL COST TO ACCOUNT FOR:
				Material		Conversion
Cost Added during May				850,368		649,296
Total Cost to account for:				850,368		649,296
Equivalent Units				329,600		300,600
Cost per Equivalent unit				2.58		2.16
Total cost to Account fr:
Material cost in beginning WIP				118472
Conversion cost in beginning WIP				48594
Current material cost incurred				850368
Current conversion cost incurred				649296
Total cost to account fr:				1666730
Total cost accounted for				1666730
Difference				0
Assignment of cost to output of Department:
Cost of 60,000 units from beginning inventory						167066
			EUP	Cost per EUP	Total cost
Material to complete			24000	2.58	61920
Conversion to complete			36000	2.16	77760
Total cost to complete						139680
Total cost of 60,000 units in beginning inventory						306746
Cost of Units started and completed			EUP	Cost per EUP	Total cost
Direct material			240000	2.58	619200
Conversion cost			240000	2.16	518400
Total cost of 240,000 units started and completed						1137600
Total cost of 300,000 units transferred out						1444346
Cost of units in Ending WIP			EUP	Cost per EUP	Total cost
Direct material			65600	2.58	169248
Conversion cost			24600	2.16	53136
Total cost of 82,000 units in ending inventory						222384
Total costs assigned						1666730