Question

Satina Corporation's Department A has the following information:

	% Completed	Costs
Beginning Work in Process: 6,000 Units
Direct Materials	100	$43,708
Conversion	40	$35,550
New Units Started: 28,000 units
Direct Materials		$112,000
Conversion		$88,200
Ending Work in Process: 2,000 units
Direct Materials	100
Conversion	50

Required: Complete the table below using the weighted-average and FIFO methods

		Weighted-Average Equivalent Units		FIFO Equivalent Units
	Physical Units	Materials	Conversion	Materials	Conversion
Beginning WIP
Units Started
To account for
Units Finished
Ending WIP
Total to account for
Total Equivalent Units

	Weighted Average	FIFO
a. Cost per Equivalent Unit
b. Cost completed and transferred out
c. Cost in the ending WIP inventory

Answer 1

Required: Complete the table below using the weighted-average and FIFO methods

		Weighted average equivalent unit		FIFO equivalent unit
	Physical Unit	Direct material	Conversion	Direct material	Conversion
Beginning WIP	6000			0	6000*60% = 3600
Unit started	28000			26000	26000
To account for	34000
Unit finished	32000	32000	32000	26000	29600
Ending wip	2000	2000	2000*50% = 1000	2000	1000
Total to account for	34000
Total equivalent unit		34000	33000	28000	30600

Calculate following

	Weighted average	FIFO
a) Cost per equivalent unit
b) Cost completed and transferred out
c) Cost of ending WIP inventory