Question

Dengo Co. makes a trail mix in two departments: roasting and blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company uses the FIFO method of process costing. During October, the roasting department completed and transferred 24,800 units to the blending department. Of the units completed, 4,300 were from beginning inventory and the remaining 20,500 were started and completed during the month. Beginning work in process was 100% complete with respect to direct materials and 40% complete with respect to conversion. The company has 3,700 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. Information on the roasting department’s costs of beginning work in process inventory and costs added during the month follows.

1. Prepare the roasting department's process cost summary for October using the FIFO method. (Round "Cost per EUP" to 2 decimal places.)

cost	direct materials	conversion
of the beginning of work in process	11,200	113,310
added during the month	309,760	1,382,724

Total acts to count for Total units counted for Equivalent units of production (EUP). FIFO method Units Materiais EUP. Materiais Conversion Conversion Coct par equivalent unit of production Materials Conversion unded to 2 decimas +Equivalent units of production Costporovatunt of production Total costs counted for Beginning inventory Coast Cost to complete beginning inventory Direct materials EUP Cost per EUP Total ooct To complete beginning inventory Total cost of units in beginning inventory Cost of us started and com E UP Cost per EUP Total act Conversion standing in EUR Cost per EUP Total cost Conversion

Answer 1

FIFO method
Beginning units	4300	Transferred out	24,800
Started into production	24200	Ending units	3,700
	28500		28500
Equivalent units	Material	Conversion
Beginning units	4300	4300
Completion in current period	0%	60%
A	0	2580
Units started and completed	20500	20500
Completion	100%	100%
B	20500	20500
Ending Units	3,700	3,700
Completion	100%	80%
C	3700	2960
Total units A+B+C	24200	26040
Cost per equivalent units
Per unit cost	Cost	Total units	Per unit cost
Material cost	309760	24200	12.80
Conversion cost	1382724	26040	53.10
Total	1692484		65.90

Cost of goods transferred	Material	convertion cost
Beginning work in progress A	11200	113310	124510
Beginning inventory completed
Completion	0%	60%
Per unit cost	12.80	53.10
Units	4300	4300
Total cost   B	0	136998	136998
Units started and completed
Completion	100%	100%
Per unit cost	12.80	53.10
Units	20500	20500
Total cost    C	262400	1088550	1350950
Total cost A+B+C	273600	1225548	1612458
Ending work in progress
Completion	100%	80%
Per unit cost	12.80	53.10
Units	3,700	3,700
Total cost	47360	157176	204536