Question

Use the following information for the Exercises below. (The following information applies to the questions displayed below) 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, Exercise 16-11A 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 $167,066 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.)

Answer 1

Solution:

FIFO
Cost Charged to production
Total Cost of Beginning Work in process	$167,066
Total Costs incurred this period	$1,499,664
Total Cost to account for	$1,666,730
Total Cost Accounted for	$1,666,730
*Difference due to rounding cost/unit	$0
Unit Reconciliation
Units to account for:
Units in Beginning work in process	60000
Units Started this period	322000
Total Units to account for	382000
Total units Accounted for:
Units in Beginning work in process completed	60000
Units Started and Completed	240000
Units in ending work in process	82000
Total Units accounted for	382000
Equivalent units of production (EUP) - FIFO method
	Units	%Material	EUP-Material	% Conversion	EUP- Conversion
Beginning units completed this period (A)	60000	40%	24000	60%	36000
Units Started and Completed (450000-100000) (B)	240000	100%	240000	100%	240000
units of Ending work in process (D)	82000	80%	65600	30%	24600
Equivalent units of production (C+D)			329600		300600
Cost per EUP			Material		Conversion
Costs incurred this period (Total Costs)		Costs	$850,368	Costs	$649,296
/Equivalent units of Production		EUP	329600	EUP	300600
Cost per Equivalent unit of Production			$2.58		$2.16
Cost Assignment and Reconciliation
Beginning Inventory Cost:				$167,066
Cost to Complete Beginning Inventory	EUP	Cost per EUP	Total Cost
Direct materials	24000	$2.58	$61,920
Conversion	36000	$2.16	$77,760
Total Cost to complete Beginning Inventory				$139,680
Total Costs of units in Beginning Inventory				$306,746
Cost of units started and completed	EUP	Cost per EUP	Total Cost
Direct Material	240000	$2.58	$619,200
Conversion	240000	$2.16	$518,400
Total Cost of units started and completed				$1,137,600
Total cost of units transferred out				$1,444,346
Cost of ending work in process	EUP	Cost per EUP	Total Cost
Direct Material	65600	$2.58	$169,248
Conversion	24600	$2.16	$53,136
Total Ending work in process				$222,384
Total Costs accounted for				$1,666,730