Question

Required Information Use the following information for the Quick Study below. The following information applies to the questions displayed below] BOGO Inc. has two sequential processing departments, roasting and mixing. At the beginning of the month, the roasting department has 3,380 units in Inventory. 80% complete as to materials. During the month, the roasting department started 22,600 units. At the end of the month, the roasting department had 5,300 units in ending Inventory, 90% complete as to materials. Cost Information for the roasting department for the month is as follows: Beginning work in process inventory (direct materials) $ 5,620 Direct materials added during the month 50,900 QS 20-21A FIFO: Computing equivalent units and cost per EUP (direct materials) LO C4 Using the FIFO method, compute the roasting department's (a) equivalent units of production for materials and (b) cost per equivalent unit of production for materials for the month

Answer 1

a) Equivalent unit

	Units	% Material	EUP-Material
Beginning WIP	3380	20%	676
Unit started and completed	17300	100%	17300
Ending WIP	5300	90%	4770
Equivalent unit			22746

Cost per EUP

Choose numerator	Choose denominator	Cost per equivalent unit
Cost added	Equivalent unit	Cost per equivalent unit
50900	22746	2.24