Question

! 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 395,000 units of a product and transferred them to the next department. Of these transferred units, 79,000 were in process in the production department at the beginning of April and 316,000 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, 101,000 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 $1,336,480 of direct materials and $970,047 of conversion costs charged to it during April. Also, its beginning inventory of $270,083 consists of $250,325 of direct materials cost and $19,758 of conversion costs. 1. Compute the direct materials cost per alent 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

For direct material 80% unit completed in the previous period. It means the remaining 20% completed in this month.

For conversion cost 20% unit completed in the previous period. It means the remaining 80% completed in this month.

Equivalent Units of production
	Units	material (%)	EUP - Materials	Conversion (%)	EUP - Conversion
units in beginning WIP inventory	79,000	20%	15,800	80%	63,200
Units in Started and completed (395000-79000)	316,000	100%	316,000	100%	316,000
units in ending WIP inventory	101,000	85%	85,850	35%	35,350
Equivalent Units of production			417,650		414,550
Cost per Equivalent Unit
Cost incurred during Month
Total costs		costs	$1,336,480		$970,047
Equivalent Units of production		EUP	417,650	EUP	414,550
Cost per Equivalent Unit			$3.20		$2.34
total cost to be accounted for
Direct material in beginning WIP	250,325
Conversion costs in beginning WIP	19,758
Direct material during the month	1,336,480
Conversion costs during the month	970,047
total cost to be accounted for	2,576,610
Total costs accounted for	2,576,610
Difference due to rounding	0
cost assigned to units transferred out
Cost of beginning inventory
Beginning inventpory				270,083
	EUP	Per unit	Total costs
Materials to complte	15,800	$3.20	$50,560
Conversion to complte	63,200	$2.34	$147,888
Total costs to complte				$198,448
Total Cost of beginning inventory				$468,531
Cost of units in Started and completed
	EUP	Per unit	Total costs
Materials to complte	316,000	$3.20	$1,011,200
Conversion to complte	316,000	$2.34	$739,440
Total Cost of units in Started and completed				$1,750,640
cost assigned to units transferred out				$2,219,171
cost assigned to units ending work in progress
Materials to complte	85,850	$3.20	$274,720
Conversion to complte	35,350	$2.34	$82,719
Cost assigned to units ending work in progress				$357,439
Total cost assigned				$2,576,610

Exaplanation

XIA 5 2020-09(2) SEP.xlsx - Microsoft Excel ? © X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW DEVELOPER Sign in H2 х А B с D E F H 2 3 4 Company Name Assembly Department production Report First in First out (FIFO Method Month ended April 30 5 6 7 8 9 9 10 Summary of Physical units Units in beginning WIP inventory Units started during month (496000-79000) Total unit to be accounted for Units completed and transferred out (316000+79000) Units in ending WIP inventory Total unit accounted for 79000 417000 496000 395000 11 12 13 101000 14 496000 15 16 Equivalent Units of production 17 18 19 Particulars units in beginning WIP inventory Units in Started and completed (395000-79000) units in ending WIP inventory Equivalent Units of production Physical units % 79000 316000 101000 Direct material Conversion Cost units % units 20% 15800 80% 63200 316000 100% 316000 85% 85850 35% 35350 417650 414550 20 100% 21 22 23 24 Summary of cost to be accounted Direct material Conversio n Cost 25 Total 26 Activate Windows Go to Settings to activate Windows. Cost in beginning WIP ... Sheet57 Sheet57 Sheet58 CIRCULAR REFERENCES 250325 19758 270083 Sheet62 Sheet63 Sheet64 Sheet65 Sheet59 Sheet60 Sheet61 + READY + + 100% I Search the web and Windows O ENG US 09:01 17-09-20

XIA 5 2020-09(2) SEP.xlsx - Microsoft Excel ? © X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW DEVELOPER Sign in H47 А B с D E F G H 24 Summary of cost to be accounted Direct material Conversio n Cost 25 Total 26 19758 27 Cost in beginning WIP Cost incurred during Month (Add) total cost to be accounted for 250325 1336480 1586805 970047 270083 2306527 2576610 989805 28 29 30 31 1336480 cost per Equivalent Unit Cost incurred during Month Equivalent Units of production Cost per Equivalent Unit 32 417650 3.20 970047 414550 2.34 33 5.54 34 35 36 37 38 Assign costs to units transferred out and units in ending WIP inventory cost assigned to units transferred out Direct material 250325 Conversion Cost 19758 Cost in beginning WIP 39 270,083 40 41 Direct material (15800*3.2) Conversion Cost (63200*2.34) Cost incurred for complete beginning WIP 50560 147888 42 43 198,448 44 45 46 47 Direct material (316000*3.2) Conversion Cost (316000*2.34) Cost of units in Started and completed cost accioned to unite transferred out ... Sheet57 Sheet58 Sheet59 Sheet60 CIRCULAR REFERENCES 1011200 739440 1,750,640 2.210 171 Sheet62 Sheet63 Sheet64 28 Activate Windows Go to Settings to activate Windows. Sheet61 Sheet65 READY 3 + I + 100% 09:01 17-09-20 Search the web and Windows 0 ENG US

XIA 5 2020-09(2) SEP.xlsx - Microsoft Excel ? © X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW DEVELOPER Sign in H29 X f А B с D E F H 29 30 31 1336480 970047 cost per Equivalent Unit Cost incurred during Month Equivalent Units of production Cost per Equivalent Unit 32 417650 3.20 414550 2.34 33 5.54 34 35 36 37 Assign costs to units transferred out and units in ending WIP inventory cost assigned to units transferred out Direct material 250325 Conversion Cost 19758 Cost in beginning WIP 38 270,083 39 40 41 50560 42 Direct material (15800*3.2) Conversion Cost (63200*2.34) Cost incurred for complete beginning WIP 147888 43 198,448 44 45 46 47 1011200 739440 Direct material (316000*3.2) Conversion Cost (316000*2.34) Cost of units in Started and completed cost assigned to units transferred out 1,750,640 2,219,171 48 49 50 51 274720 52 cost assigned to units ending work in progress Direct material (85850*3.2) Conversion Cost (35350*2.34) cost assigned to units ending work in progress Total cost assigned 82719 53 357,439 2,576,610 54 55 Activate Windows Go to Settings to activate Windows. Sheet57 Sheet58 Sheet59 Sheet60 Sheet61 Sheet62 Sheet63 Sheet64 Sheet65 + READY CIRCULAR REFERENCES 0 + + 100% I Search the web and Windows O ENG US 09:01 17-09-20