Transferred-in costs, weighted-average and FIFO. (Chapter Appendix I) Frito-Lay, Inc., manufactures convenience foods, including potato chips and corn chips. Production of corn chips occurs in four departments: cleaning, mixing, cooking, and drying and packaging.

Consider the Drying and Packaging Department, where direct materials (packaging) is added at the end of the process. Conversion costs are added evenly during the process. $uppose the accounting records of a Frito-Lay plant provided the following information for com chips in its Drying and Packaging Department during a weekly period (week 37):

Physical Units Transferred-in Direct Conversion

(Cases) Costs Materials Costs Beginning work in process, week 37* 1,300 Transferred in during week 37 from Cooking Department 5,050 Completed during week 37 5,300 Ending work in process, week 37'*' 1,050 Costs added during week 37

$29,000 $ 0 $ 9,060

$96,000 $25,200 $38,400

‘Degree of completion: transferred-in costs, 100%; direct materials, ?%; conversion costs, 80%.

fDegree of completion: transferred-in costs, ?%; direct materials, ?%; conversion costs, 40%.

Required 1. For each cost element, compute equivalent units ofwork done in week 37 in the Drying and Packaging Department. $how physical units in the first column.

2. $ummarize the total Drying and Packaging Department costs for week 37, and assign these costs to units completed (and transferred out) and to units in ending work in process using the weighted-average method.

3. Assume that the FIFO method is used for the Drying and Packaging Department. The transferred-in costs for work-in-process beginning inventory are $28,920. The transferredin costs during the week from the Cooking Department are $94,000. All other data are unchanged. $ummarize the total Drying and Packaging Department costs for week 37 and assign these costs to units completed (and transferred out) and to units in ending work in process using the FIFO method.