Gunnison Company had the following equivalent units schedule and cost information for its
Sewing Department for the month of December:

Required:
1. Calculate the unit cost for December, using the FIFO method.
2. Calculate the cost of goods transferred out, calculate the cost of EWIP, and reconcile the costs assigned with the costs to account for.
3. What if you were asked for the unit cost from the month of November? Calculate November€™s unit cost and explain why this might be of interest to management.

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Direct Materials Conversion Costs Units started and completed Add: Units in beginning work in process X 40,000 40.,000 Percentage complete 5,000 × 0% direct materials 5,000 × 50% conversion costs 2,500 Add: Units in ending work in process X Percentage complete 10.000 × 100% direct materials 10.000 35% conversion costs 10,000 3,500 46,000 Equivalent units of output Costs 50,000 Work in process, December I Direct materials Conversion costs Total work in process 35,000 10,000 45,000 Current costs Direct materials Conversion costs Total current costs $400,000 184,000 $584,000