Question

of 4 During April, the first production department of a process manufacturing system completed its work on 315,000 units of a product and transferred them to the next department. Of these transferred units, 63,000 were in process in the production department at the beginning of April and 252,000 were started and completed in April. April's beginning Inventory units were 75% complete with respect to materials and 25% complete with respect to conversion. At the end of April, 85,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion. The production department had $825,945 of direct materials and $707,955 of conversion costs charged to it during April. Also, its beginning inventory of $155,675 consists of $131,555 of direct materials cost and $24,120 of conversion costs. 1. Compute the direct materials cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.) 2. Compute the conversion cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.) 3. Using the FIFO method, assign April's costs to the department's output-specifically, its units transferred to the next department and its ending work in process inventory (Round "Cost per EUP" to 2 decimal places.) Required 1. and 2.

Answer 1

Solution:

FIFO
Cost Charged to production
Total Cost of Beginning Work in process	$155,675
Total Costs incurred this period	$1,533,900
Total Cost to account for	$1,689,575
Total Cost Accounted for	$1,689,575
*Difference due to rounding cost/unit	$0
Unit Reconciliation
Units to account for:
Units in Beginning work in process	63000
Units Started this period	337000
Total Units to account for	400000
Total units Accounted for:
Units in Beginning work in process completed	63000
Units Started and Completed	252000
Units in ending work in process	85000
Total Units accounted for	400000
Equivalent units of production (EUP) - FIFO method
	Units	%Material	EUP-Material	% Conversion	EUP- Conversion
Beginning units completed this period (A)	63000	25%	15750	75%	47250
Units Started and Completed (450000-100000) (B)	252000	100%	252000	100%	252000
units of Ending work in process (D)	85000	80%	68000	30%	25500
Equivalent units of production (C+D)			335750		324750
Cost per EUP			Material		Conversion
Costs incurred this period (Total Costs)		Costs	$825,945	Costs	$707,955
/Equivalent units of Production		EUP	335750	EUP	324750
Cost per Equivalent unit of Production			$2.46		$2.18
Cost Assignment and Reconciliation
Beginning Inventory Cost:				$155,675
Cost to Complete Beginning Inventory	EUP	Cost per EUP	Total Cost
Direct materials	15750	$2.46	$38,745
Conversion	47250	$2.18	$103,005
Total Cost to complete Beginning Inventory				$141,750
Total Costs of units in Beginning Inventory				$297,425
Cost of units started and completed	EUP	Cost per EUP	Total Cost
Direct Material	252000	$2.46	$619,920
Conversion	252000	$2.18	$549,360
Total Cost of units started and completed				$1,169,280
Total cost of units transferred out				$1,466,705
Cost of ending work in process	EUP	Cost per EUP	Total Cost
Direct Material	68000	$2.46	$167,280
Conversion	25500	$2.18	$55,590
Total Ending work in process				$222,870
Total Costs accounted for				$1,689,575