(Standardprocess costing) Guillermo Company uses a standard FIFO process cost¬ ing system to account for its tortilla manufacturing process. The tortillas are packaged and sold by the dozen. The company has set the following standards for production of each one-dozen package:

On April 1, the company had 7,200 individual tortillas in process; these were 100 percent complete as to ingredients, zero percent complete as to the pack¬ aging, and 30 percent complete as to labor and overhead. One hundred forty- four thousand tortillas were started during April and 147,960 were finished. The ending inventory was 100 percent complete as to ingredients, zero percent com¬ plete as to the packaging, and 60 percent complete as to labor and overhead.

a. What were the equivalent units of production for April?

b. What was the cost of the packages transferred to Finished Goods Inventory during April?

c. What was the cost of the ending Work in Process Inventory for April?LO1

Transcribed Image Text:

Direct material-ingredients $.35 Direct material-package .05 Direct labor .07 Overhead .13 Total cost $.60