Question

Data concerning a recent period's activity in the Assembly Department, the first processing department in a company that uses the FIFO method in its process costing, appear below: Materials Conversion Cost of work in process inventory at the beginning of the period Equivalent units in the ending work in process inventory Equivalent units required to complete the beginning work in process inventory Cost per equivalent unit for the period 3,700 330 660 $ 1.40 $740 140 1,280 $0.50 A total of 25,500 units were completed and transferred to the next processing department during the period. Beginning work in process inventory consisted of 2,400 units and ending work in process inventory consisted of 1,500 units Required: 1. Compute the Assembly Department's cost of ending work in process inventory for materials, conversion, and in total for the period 2. Compute the Assembly Department's cost of units transferred out to the next department for materials, conversion, and in total for the period Materials Conversio Total 1.Cost of ending work in process inventory 2. Cost of the units transferred to the next department

Answer 1

1		Material	Conversion	Total
	Ending WIP:
	EU of production	330	140
	Cost per EU	$1.40	$0.50
		$462.00	$70.00	$532.00	Cost of ending WIP inventory
2
		Material	Conversion	Total
	Units Transferred Out:
	Beginning cost of WIP	$3,700	$740	$4,440
	Cost to Complete Beginning WIP
	EU of Production	660	1,280
	Cost per EU	$1.40	$0.50
	Cost to Complete Beginning WIP	$924	$640	$1,564
	Units Started & Completed during period
	EU of Production	23,100	23,100
	Cost per EU	$1.40	$0.50
		$32,340	$11,550	$43,890
		$36,964	$12,930	$49,894	Cost of units transferred to next department