Question

second department Angerstein Inc. produces calendars in a two-process, two-department operation. In the Printing Department, calendars are printed and cut. In the Assembly Department, the material received from Printing is assembled into individual calendars and bound. Each department maintains its own Work in Process Inventory, and costs are assigned using FIFO process costing. In Assembly, conversion costs are incurred evenly throughout the process; direct material is added at the end of the process. For September, the following production and cost information is available for the Assembly Department: • Beginning WIP Inventory: 5,000 calendars (30 percent complete as to conversion); transferred in cost, $7,550; conversion cost, $1,093 • Transferred in during September: 80,000 calendars • Current period costs: transferred in, $80,000; direct material, $10,270, conversion, $13,991 • Ending WIP Inventory: 6,000 calendars (80 percent complete as to conversion)

Answer 1

a EU for transferred in EU for direct materials EU for conversions 80,000 79,000 82,300 b Cost per equivalent unit Transferred in cost per EUP Material cost per EUP Conversion cost per EUP $1.00 $0.13 $0.17 cCost transferred to Finished Goods Inventory $106,088 d Cost of Ending WIP Inventory $6,816 Angerstein Inc. Cost of Production Report (FIFO Method)- Assembly Department For the Month Ended September Unit Information Physical flow of units Units charged to production Inventory in process, Aug 1 Units Transferred in Total Units accounted for Units to be assigned cost: Physical Units 5,000 80,000 85,000 Whole units Equivalent Units % Direct % Direct % Conversion Completed Materials Completed Materials Completed Cost 5,000 100% 100% 5,000 74,000 70% 100% 3,500 74,000 100% 74,000 Inventory in process, Sep 1 Started and completed during the month Units completed and transferred out Inventory in process, Sep 30 a Total units to be assigned costs 74,000 79,000 6,000 85,000 100% 0% 80% 6,000 80,000 0 79,000 4,800 82,300 Conversion Cost Information Cost per equivalent unit Transferred in Total cost for Sep in Assembly department $80,000 Total equivalent units 80,000 b Cost per equivalent unit $1.00 Direct Materials $10,270 79,000 $0.13 $13,991 82,300 $0.17 Total Cost assigned to production Transferred in Inventory in process, Sep 1 $7,550 Costs incurred in Sep month $80,000 Total costs accounted for by the Mixing Department $87,550 Direct Conversion Materials $0 $1,093 $10,270 $13,991 $10,270 $15,084 $8,643 $104,261 $112,904 Cost allocated to completed and partially completed units: Total $8,643| Units transferred out: Units Beg WIP From prior period From current period Direct Material Conversion cost Cost of completed Beg WIP Units started and completed cCost of units completed and transferred out d End WIP Transferred in Conversion cost Total cost accounted for $650 $5951 $9,888 $96, 2001 $106,088 $6,000 $8161 $6,816 $112,904