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...

1 Required Information The following information applies to the questions displayed below] Part 1 of 2 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 22 200 units to the blending department of the units completed, 3.000 were from beginning inventory and the remaining 19,200 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 2400 units (100% complete with respect to direct materials and 80% complete with respect to conversioni 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. Print Cost Beginning work in process inventory Added during the month Direct Materials Conversion $ 9,900 $ 11,970 248,429 1,082, 970

Answer 1

Cost charged to production:
Cost of beginning WIP	120870
Cost incurred this period	1331370
Total cost to account fo	1452240
Total cost accounted for	858700
Difference		0
UNITS TO ACCOUNT FOR:
Beginning Work in Process units			3,000
Add: Units Started in Process			21,600
Total Units to account for:			24,600
UNITS TO BE ACCOUNTED FOR:
Units completed from beginning WIP		3000
Units started and completed			19,200
Ending Work in Process			2,400
Total Units to be accounted for:		24,600
Equivalent Units:
			UNITS	Material Cost	Conversion
				% Completion	Units	% Completion	Units
Units completed from Beg.	3000	0%	0	60%	1,800
Units started and completed	19200	100%	19,200	100%	19,200
Ending Work in Process	2400	100%	2,400	80%	1,920
Total Equivalent units	24600		21,600		22,920
TOTAL COST TO ACCOUNT FOR:
				Material		Conversion
Cost Added during May		2,48,400		10,82,970
Total Cost to account for:		2,48,400		10,82,970
Equivalent Units			21,600		22,920
Cost per Equivalent unit		11.5		47.25
TOTAL COST ACCOUNTED FOR:
Units completed from Beg. Wip (3000 units)
				Equivalent unit	Cost per EU	Total Cost
Cost of beginning WIP					120870
Material				0	11.5	0
Conversion Cost			1,800	47.25	85050
Total cost to complete beginning WIP				85050
Units started and completed (19200 units)
				Equivalent unit	Cost per EU	Total Cost
Material				19,200	11.5	220800
Conversion Cost			19,200	47.25	907200
Total cost of units started and complted				1128000
Total cost of units transferred out				1333920
Ending Work in process (2400 units)
				Equivalent unit	Cost per EU	Total Cost
Material				2,400	11.5	27600
Conversison Cost			1,920	47.25	90720
Total cost of Ending Work in process:				118320
Total cost accounted for					1452240