Question

pter 4 Saved Exercise 4A-6 Equivalent Units of Production-FIFO Method [LO 4-6] Alaskan Fisheries, Inc., processes salmon for various distributors and it uses the FIFO method in its process costing system. The company has two processing departments--Cleaning and Packing. Data relating to pounds of salmon processed in the Cleaning Department during July are presented below: Percent Completed Pounds of Labor and Salmon Materials Overhead Work in process inventory, July 1 54,000 1008 60 Work in process inventory, July 31 37,000 100 516 A total of 386,000 pounds of salmon were started into processing during July. All materials are added at the beginning of processing in the Cleaning Department. Required: Compute the Cleaning Department's equivalent units of production for materials and for labor and overhead for July. Materials Labor and Overhead Equivalent units of production

Answer 1

Work in process inventory, July 1 Add: Started into processing during July month Less: Work in process inventory, July 31 Completed and transferred during the month Pounds of Salmon 54,000 386,000 37,000 403,000 Materials Labor and Overhead 0 21,600 349,000 Work in process inventory, July 1: 54,000 * (100% - 100%) 54,000 * (100% -60%) Started and completed during the month: (403,000 - 54,000) * 100% (403,000 - 54,000) * 100% Work in process inventory, July 31: 37,000 * 100% 37,000 * 51% Equivalent units of production 3 349,000 37,000 18,870 389,470 7 386,000 Started and completed during the month = Completed and transfeered during the month - Work in process inventory, July 1 Materials 386,000 Labor and Overhead 389,470 Equivalent units of production