Question

FIFO Method, Unit Cost, Valuation of Goods Transferred Out and Ending Work in Process Dama Company produces women's blouses and uses the FIFO method to account for its manufacturing costs. The product Dama makes passes through two processes: Cutting and Sewing. During April, Dama's controller prepared the following equivalent units schedule for the Cutting Department: Conversion Costs Direct Materials Units started and completed 45,000 45,000 Units, beginning work in process: 14,000 x 0% 14,000 x 50% 7,000 Units, ending work in process: 20,000 x 100% 20,000 20,000 x 25% 5,000 Equivalent units of output 65,000 57,000 Costs in beginning work in process were direct materials, $25,000; conversion costs, $70,000. Manufacturing costs incurred during April were direct materials, $260,000; conversion costs, $364,800.
NUMBER #3. PLEASE

Answer 1

Solution for #3

Cost of Ending Work in process	$              112,000
Cost of goods Transferred out	$              607,800

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed	% completed this period
	Material	Conversion	Material	Conversion
Beginning WIP	14,000	100%	50%	0%	50%
Units introduced	65,000
Total units to be accounted for	79,000
Completed and Transferred unit	59,000	0%	0%	100%	100%
Ending WIP	20,000	0%	0%	100%	25%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material	Conversion
Units Transferred:	% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	14,000	0%	-	50%	7,000
From units started/Introduced	45,000	100%	45,000	100%	45,000
Total	59,000		45,000		52,000
	Total Units	Material	Conversion
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	20,000	100%	20,000	25%	5,000
Total EUP	79,000		65,000		57,000

.

STEP 3
Cost per Equivalent Units AND Cost to be accounted for
	Material	Conversion	TOTAL
Cost incurred in Current Period	$ 260,000	$ 364,800	$ 624,800
Total Equivalent Units	65,000	57,000
Cost per Equivalent Units	$ 4.00	$ 6.40	$ 10.40
Cost of Beginning WIP	$ 25,000	$ 70,000	$ 95,000
Total cost to be accounted for	$ 719,800

.

STEP 4
Cost report [Including Reconciliation]
	Cost of	Units Transferred	59,000.00	units
		Equivalent Units [Step 2]	Cost per Equivalent Units [Step 3]	Cost of Units Transferred	TOTAL
A	From Beginning WIP:
	Material	-	$ 4.00	$ 0
	Conversion	7,000	$ 6.40	$ 44,800	$ 44,800
B	From units started & completed
	Material	45,000	$ 4.00	$ 180,000
	Conversion	45,000	$ 6.40	$ 288,000	$ 468,000
C=A+B	Total				$ 512,800
D	Cost of Beginning WIP		$ 95,000
E=C+D	Total Cost of Units transferred		$           607,800.00
	Cost of	Ending WIP	20,000.00	units
		Equivalent Units [Step 2]	Cost per Equivalent Units [Step 3]	Cost of Ending WIP	TOTAL
F	Material	20,000	$ 4.00	$ 80,000
G	Conversion	5,000	$ 6.40	$ 32,000
H = F + G	Total Cost of Ending WIP		$ 112000.0
I = E + H	Total Cost accounted for	$ 719,800
J	Rounding Off Differences	$ 0
K = I + J	Total cost to be accounted for [equals to computed in STEP 3]	$ 719,800