(FIFO cost per EUP) The following information has been gathered from the records of Snack-On Foods for July 1997. The firm makes a variety of snacks; the information presented here is for a peanut and pretzel mix. Materials are added at the beginning of processing; overhead is applied on a direct labor basis. The mix is transferred to a second department for packaging. Snack-On uses a FIFO process costing system.

Beginning inventory cost totaled $13,875. For July 1997, compute the following:

a. Equivalent units of production by cost component.

b. Cost per equivalent unit by cost component.

c. Cost of mix transferred to the packaging department in July.

d. Cost of July’s ending inventory.LO1

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Beginning WIP inventory (40% complete as to conversion) Mix started in July Ending WIP inventory (70% complete as to conversion) Materials cost incurred in July Conversion costs incurred in July 5,000 pounds 90,400 pounds 4,000 pounds $415,840 $106,030