Question

Refer to the following information about the Finishing Department in the Gallagher Factory for the month of June. Gallagher Factory uses the FIFO method of inventory costing. Beginning Work in Process inventory: Physical units..... % complete for materials % complete for conversion costs Materials cost from May Conversion costs from May 5,000 units 70% 25% $7,350 $3,125 Product started: Physical units 44,000 units Ending Work in Process inventory: Physical units % complete for materials % complete for conversion costs 4,000 units 40% 10% Manufacturing costs for June: Materials Conversion costs $96,975 $79,470 Compute costs in ending inventory for June.

Answer 1

Answer

· Requirement asked

Costs of Ending WIP:	EUP	Cost per EUP	Total Cost
- Direct Materials	1,600	$                              2.25	$            3,600.00
- Conversion	400	$                              1.80	$                720.00
Total cost of ending WIP				$                 4,320.00

Cost in Ending Inventory for June = $ 4320

· Related working

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	4,000	40.0%	1,600	10.0%	400
Units STARTED & COMPLETED	40,000	100%	40,000	100%	40,000
Units of beginning WIP	5,000	30.00%	1,500	75%	3,750
Equivalent Units of Production			43,100		44,150
COST per EUP			Material		Conversion
Cost incurred this period			$          96,975.00		$                    79,470.00
Total Costs		Costs	$          96,975.00	Costs	$                    79,470.00
Equivalent units of production		EUP	43,100	EUP	44,150
Cost per EUP			$                2.2500		$                          1.8000