Question

During April, the first production department of a process manufacturing system completed its work on 320,000 units of a product and transferred them to the next department...

Required Information (The following information applies to the questions displayed below] During April, the first production department of a process manufacturing system completed its work on 320,000 units of a product and transferred them to the next department of these transferred units, 64,000 were in process in the production department at the beginning of April and 256,000 were started and completed in April. April's beginning inventory units were 80% complete with respect to materials and 20% complete with respect to conversion. At the end of April, 86,000 additional units were in process in the production department and were 85% complete with respect to materials and 35% complete with respect to conversion. The production department had $868,426 of direct materials and $755,552 of conversion costs charged to it during April. Also, its beginning inventory of $148,647 consists of $133,979 of direct materials cost and $14,668 of conversion costs. 1. Compute the direct materials cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.) 2. Compute the conversion cost per equivalent unit for April (Round "Cost per EUP" to 2 decimal places.) 3. Using the FIFO method, assign April's costs to the department's output-specifically, its units transferred to the next department and its ending work in process inventory. (Round "Cost per EUP" to 2 decimal places.)

Answer 1

Required 1 and 2
Equivalent Units of Production (EUP)- FIFO method
	Units	% Materials	EUP- Materials	% Conversion	EUP- Conversion
Units to complete beginning work in process	64000	(100%-80%)= 20%	(64000*20%)= 12800	(100%-20%)= 80%	(64000*80%)= 51200
Units started and completed	256000	100%	256000	100%	256000
Units in ending work in process	86000	85%	(86000*85%)= 73100	35%	(86000*35%)= 30100
Equivalent units of production	406000		341900		337300
Cost per Equivalent unit of production			Materials		Conversion
Cost incurred this period			$868426		$755552
Total costs		Costs	$868426	Costs	$755552
/ Equivalent units of production		EUP	341900	EUP	337300
Cost per equivalent unit of production (rounded to 2 decimals)			$2.54		$2.24
Total costs to account for:
Direct materials- Prior period	$148647
Conversion- Prior period	14668
Direct materials- Current period	868426
Conversion- Current period	755552
Total costs to account for:	$1787293
Total costs accounted for	1787293
Difference due to rounding cost/unit	$0.00
Required 3
Assignment of costs to output of department
Cost of 64000 units from beginning inventory
Beginning inventory (148647+14668)				$163315
	EUP	Cost per EUP	Total cost
Materials to complete	12800	$2.54	$32512
Conversion to complete	51200	$2.24	114688
Total costs to complete				147200
Total cost of 64000 units in beginning inventory				310515
Cost of units started and completed this period	EUP	Cost per EUP	Total cost
Direct materials	256000	$2.54	$650240
Conversion costs	256000	$2.24	573440
Total cost of 256000 units started and completed				1223680
Total cost of 320000 units transferred out				1534195
Cost of units in ending inventory	EUP	Cost per EUP	Total cost
Direct materials	73100	$2.54	$185674
Conversion costs	30100	$2.24	67424
Total costs of 86000 units in ending inventory				253098
Total costs assigned				$1787293

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