Question

Calculate Equivalent Units, Unit Costs, and Transferred Costs—FIFO Method Godfrey Manufacturing, Inc., operates a plant that...

Calculate Equivalent Units, Unit Costs, and Transferred Costs—FIFO Method
Godfrey Manufacturing, Inc., operates a plant that produces its own regionally marketed Spicy Steak Sauce. The sauce is produced in two processes, blending and bottling. In the Blending Department, all materials are added at the start of the process, and labor and overhead are incurred evenly throughout the process. Godfrey uses the FIFO method. The following data from the Work in Process—Blending Department account for January 2016 is missing a few items:
Work in Process - Blending Department
January 1 inventory (5,000 gallons, 60% processed) $68,020
Transferred to Bottling Department (60,000 gallons)
January charges:
Direct material (61,000 gallons) 579,500
Direct labor 471,300
Manufacturing overhead 201,900
January 31 inventory ( _______ gallons, 70% processed)

Assuming Godfrey uses the FIFO method in process costing, calculate the following amounts for the Blending Department:
a. Number of units in the January 31 inventory.
b. Equivalent units for materials and conversion costs.
c. January cost per equivalent unit for materials and conversion costs.
d. Cost of the units transferred to the Bottling Department.
e. Cost of the incomplete units in the January 31 inventory

Round average cost per equivalent unit to two decimal places, if applicable. Round other answers to the nearest whole number, when appropriate.
Godfrey Manufacturing, Inc. Blending Department
Flow of Units and Equivalent Units Calculation, January 2016
Equivalent Units
% in Direct % in Conversion
January Materials January Costs
Complete/Transferred
Beginning Inventory
Started and completed
Ending inventory
Total b. b.


Product Cost Report
Direct Conversion
Materials Costs
Beginning Inventory
Current
Total Costs to Account For
÷ Total Equivalent Units c. c.
Average cost / Equivalent unit (round two two decimal places)
Beginning inventory
Costs incurred in Dec.
Costs incurred in Jan.
Started and finished
Cost of goods manufactured d.
Ending inventory:
Direct Materials
Conversion costs
Cost of Ending Inventory e.
Total Costs Allocated
0 0
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Answer #1

Please find below workings

DATE d cost of units Horsterred to opening WIP Add: - Labour (2000x7.79) overhead (2000X 3.34) Bottling Department: Am ($) Am

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