Montreal Manufacturing Inc. has the following cost and production data for the month of April.
Beginning WIP .............................. 18,000 units
Started in production ....................... 100,000
Completed production ..................... 94,000
Ending WIP .................................. 24,000
The beginning inventory was 60% complete for conversion costs. The ending inventory was 40% complete for conversion costs. Materials are added at the beginning of process. Costs pertaining to the month of April are as follows:
Beginning inventory costs are:
Materials .......................................... $65,000
Direct labour ...................................... 20,000
Factory overhead ................................. 15,000
Costs incurred during April include:
Materials .......................................... $550,000
Direct labour .................................... 195,000
Factory overhead ............................... 380,000
Instructions
(a) Calculate the equivalent units of production for
(1) Materials and
(2) Conversion costs for the month of April using the first-in, first-out (FIFO) method.
(b) Calculate the unit costs for the month.
(c) Determine the costs to be assigned to the units transferred out and in ending work in process.