Question

Yarmouth Company produces a liquld solvent in two departments: Miding and Finishing, Accounting records at Yarmouth show the in the Finishing Department): following Information for Finishing operatons for Febuary (n new materal s ade WIP inventory-Finishing Beginning inventory (11,000 units, 30% complete we, respect to Finishing costs) Transferred-in costs (from Moing) Finishing conversion costs Current work (100,000 units started) Mixing costs Finishing costs 130,000 11,250 980,000 508,500 The ending inventory has 15,000 units, whigh ane 60 percent complete with respect to Finishing Department costs and 100 peroent complete for Mixking Depertment ots Required: a. Complete the production cost report using the FIFO method.(Round "Cost per equivalent uni" to 2 decimal places

Answer 1

Answer

• Requirement, as asked

	Physical Units	Mixing Department	Finishing Department
Flow of Units:
Units to be accounted for:
Beginning WIP inventory	11,000
Units started this period	100,000
Total Units to account for	111,000
Units accounted for:
Completed & Transferred out
From Beginning WIP Inventory	11,000
Mixing Department		-
Finishing Department			7,700
Started & Completed currently	85,000	85,000	85,000
Units in Ending WIP Inventory	15,000
Mixing Department		15,000
Finishing Department			9,000
Total units accounted for	111,000	100,000	101,700

	TOTAL	Mixing Department	Finishing Department
Flow of Costs:
Cost of be accounted for:
Costs in beginning WIP Inventory	$                     141,250.00	$                 130,000.00	$          11,250.00
Current Period Costs	$                 1,488,500.00	$                 980,000.00	$       508,500.00
Total Cost to be accounted for	$                 1,629,750.00	$             1,110,000.00	$       519,750.00
Cost per Equivalent units
Mixing Department		$                              9.80
Finishing Department			$                    5.00
Costs accounted for:
Costs assigned to units transferred out:
Costs from beginning WIP Inventory	$                     141,250.00	$                 130,000.00	$          11,250.00
Current Costs added to complete beginning WIP Inventory	$                       38,500.00
Mixing Department		$                                   -
Finishing Department			$          38,500.00
Current Costs of units started and completed:	$                 1,258,000.00
Mixing Department		$                 833,000.00
Finishing Department			$       425,000.00
Total cost transferred out	$                 1,437,750.00	$                 963,000.00	$       474,750.00
Cost of ending WIP Inventory	$                     192,000.00
Mixing Department		$                 147,000.00
Finishing Department			$          45,000.00
Total costs accounted for	$                 1,629,750.00	$             1,110,000.00	$       519,750.00

• Working

COST ASSIGNMENT & RECONCILIATION
Cost Transferred out:	EUP	Cost per EUP	Total Cost
Cost of Beginning WIP			$       141,250.00
Cost to complete beginning WIP-
- Mixing Department	-	$                              9.80	$                         -
- Finishing Department	7,700	$                              5.00	$          38,500.00
Total cost to complete beginning WIP			$       179,750.00
Cost of Units started & completed this period:	EUP	Cost per EUP	Total Cost
- Mixing Department	85,000	$                              9.80	$       833,000.00
- Finishing Department	85,000	$                              5.00	$       425,000.00
Total costs started & Completed this period			$    1,258,000.00
Total cost of work finished this period				$         1,437,750.00
Costs of Ending WIP:	EUP	Cost per EUP	Total Cost
- Mixing Department	15,000	$                              9.80	$       147,000.00
- Finishing Department	9,000	$                              5.00	$          45,000.00
Total cost of ending WIP				$             192,000.00