Question

! Required information Problem 16-7AA FIFO: Process cost summary, equivalent units, cost estimates LO C2, C3, C4, P4 [The following information applies to the questions displayed below.) Dengo Co.makes a trail mix in two departments: roasting and blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company uses the FIFO method of process costing. During October, the roasting department completed and transferred 22,200 units to the blending department of the units completed, 3,000 were from beginning inventory and the remaining 19,200 were started and completed during the month. Beginning work in process was 100% complete with respect to direct materials and 40% complete with respect to conversion. The company has 2,400 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. Information on the roasting department's costs of beginning work in process inventory and costs added during the month follows. Cost Beginning work in process inventory Added during the month Direct Materials Conversion $ 9,900 $ 110,970 248,400 1,082,970 Problem 16-7AA Part 1 Required: 1. Prepare the roasting department's process cost summary for October using the FIFO method. (Round "Cost per EUP" to 2 decimal places.)

Answer 1

Total Cost Account for. # Cost of begining work in progress . - Direct material Conversion. 9,900 110,910 120,870 Cost incurred in this period - Direct material : Conversion 248 400 1082,970 1331370 145 2240 Total lost to Account for. unite unit Reconcitations units in the Begining units started this period 300o 21600 24600 22 200 Total units accounted for . units completed, and transtered oud. Ending work in progress 24oo 24600

Equivalent production under Material output unds FIFO method Conversion 7. 1 bl units Input particular gooo Begining units. (WIP) Blo 60Y. 1800 21600 Introduced completed. (FIFO) opining. 3000 . Transfered. 19200 22200 Endling units (WIP) . 19200 19200 192oo 2400 loo 2400 80 20 1920 21600 24600 24600 82022920

Cost per equivalent unit of production Materical Conversion cost. 1082970 Total Cost. Cost - Equivalent units EUP in production 248 400 21600 22920 Cost per Equv.unity production 11.50 47.25

EUP per/Eup Total Cost. Cost of Ending WIP. 2460 Direct matericel Conversion 11.50 47.25 27600 90720 1920 118,320 Total Cost of Ending work in progress. 1452240 Total Cost Incured. (1333920 + 118320