Question

Yarmouth Company produces a liquid solvent in two departments: Mixing and Finishing. Accounting records at Yarmouth show the following information for Finishing operations for February (no new material is added in the Finishing Department). $ WIP inventory-Finishing Beginning inventory (11,100 units, 20% complete with respect to Finishing costs) Transferred-in costs (from Mixing) Finishing conversion costs Current work (100,200 units started) Mixing costs Finishing costs 132,150 3,022 991,980 517,803 The ending inventory has 15,100 units, which are 50 percent complete with respect to Finishing Department costs and 100 percent complete for Mixing Department costs. Required: a. Complete the production cost report using the FIFO method. (Round "Cost per equivalent unit" to 2 decimal places.)

Answer 1

Yarmouth Company
Finishing Department
Computation of Equivalent unit (FIFO)
Particulars	Physical units	Mixing	Finishing
Units to be accounted for:
Beginning WIP Inventory	11100
Units started this period	100200
Total unit to be accounted for	111300
Units Accounted for:
Units completed and transferred out
From beginning inventory Mixing - 0% Finishing - 80%	11100	0	8880
Started and completed currently	85100	85100	85100
Units in ending WIP Mixing - 100% Finishing - 50%	15100	15100	7550
Total units accounted for	111300	100200	101530

Yarmouth Company
Finishing Department
Computation of Cost per Equivalent unit
Particulars	Total cost	Mixing	Finishing
Current period cost	$1,509,783.00	$991,980.00	$517,803.00
Equivalent units		100200	101530
Cost per equivalent unit		$9.90	$5.10

Yarmouth Company
Finishing Department
Producton cost report - FIFO
Particulars	Total cost	Mixing	Finishing
Cost Accounted for :
Cost assigned to unit transferred out:
Cost from beginning WIP Inventory	$135,172	$132,150	$3,022
Current cost added to complete beginning WIP:
Mixing	$0	$0
Finishing (8880*$5.10)	$45,288		$45,288
Total Cost from beginning inventory	$180,460	$132,150	$48,310
Current cost of unit started and completed:
Mixing (85100*$9.90)	$842,490	$842,490
Finishing (85100*$5.10)	$434,010		$434,010
Total cost of unit started and completed	$1,276,500	$842,490	$434,010
Total cost of unit transferred out	$1,456,960	$974,640	$482,320
Cost assigned to ending WIP:
Mixing (15100*$9.90)	$149,490	$149,490
Finishing (7550*$5.10)	$38,505		$38,505
Total ending WIP inventory	$187,995	$149,490	$38,505
Total cost accounted for	$1,644,955	$1,124,130	$520,825