Question

During April, the first production department of a process manufacturing system completed its work on 390,000 units of a product and transferred them to the next department of these transferred units, 78,000 were in process in the production department at the beginning of April and 312,000 were started and completed in April Aris beginning inventory units were 75% complete with respect to materials and 25% complete with respect to conversion. At the end of April, 100,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion of 4 The production department had $1.296.325 of direct materials and $929160 of conversion costs charged to it during April. Also, ts beginning inventory of $268,115 consists of $231,275 of direct materials cost and $36,840 of conversion costs. ak 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) + Required 1 and 2 Equivalent Units of Production (EUP). FIFO Method Units Materials EUP. EUP. Materials Conversion Conversion Equivalent units of production Cost per Equivalent Unit of Production Materials Conversion Total costs Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Total Costs to Account for: Costs EUP Costs EUP Total costs to account for Total costs accounted for Difference due to rounding cost/unit Required 3. Assignment of Costs to Output of Department Cost of 78,000 units from beginning inventory Beginning inventory EUP Cost per EUP Total cost Materials to complete Conversion to complete Total costs to complete Total cost of 78,000 units in beginning inventory Cost of units started and completed this period Cost per EUP EUP Total cost Direct materials Conversion costs Total cost of 312,000 units started and completed Total cost of 390,000 units transferred but Costs of units in ending inventory Direct materials Conversion costs Total cost of 100,000 units in ending inventory Total costs assigned EUP Cost per EUP Total cost

Answer 1

Required 1 and 2
Equivalent Units of Production (EUP)- FIFO method
	Units	% Materials	EUP- Materials	% Conversion	EUP- Conversion
Units to complete beginning inventory	78000	(100%-75%)= 25%	(78000*25%)= 19500	(100%-25%)= 75%	(78000*75%)= 58500
Units completed and transferred	312000	100%	312000	100%	312000
Units in ending inventory	100000	80%	(100000*80%)= 80000	30%	(100000*30%)= 30000
Equivalent units of production	490000		411500		400500
Cost per Equivalent unit of production			Materials		Conversion
Cost incurred this period			1296225		929160
Total costs		Costs	$1296225	Costs	$929160
/ Equivalent units of production		EUP	411500	EUP	400500
Cost per equivalent unit of production (rounded to 2 decimals)			$3.15		$2.32
Total costs to account for:
Direct materials- Prior period	$231275
Conversion- Prior period	36840
Direct materials- Current period	1296225
Conversion- Current period	929160
Total costs to account for:	$2493500
Total costs accounted for	2493500
Difference due to rounding cost/unit	$0.00
Required 3
Assignment of costs to output of department
Cost of 78000 units from beginning inventory				$268115
Beginning inventory
	EUP	Cost per EUP	Total cost
Materials to complete	19500	$3.15	61425
Conversion to complete	58500	$2.32	135720
Total costs to complete				197145
Total cost of 78000 units in beginning inventory				465260
Cost of units started and completed this period	EUP	Cost per EUP	Total cost
Direct materials	312000	$3.15	982800
Conversion costs	312000	$2.32	723840
Total cost of 312000 units started and completed				1706640
Total cost of 390000 units transferred out				2171900
Cost of units in ending inventory	EUP	Cost per EUP	Total cost
Direct materials	80000	$3.15	252000
Conversion costs	30000	$2.32	69600
Total costs of 100000 units in ending inventory				321600
Total costs assigned				$2493500

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