The Fujita Company uses the FIFO process costing method Consider the following for July Beginning inventory, 15,000 units, 70 percent completed regarding direct materials, which cost 89,250,000 Units completed, 80,000 Cost of materials placed in process during July, 580,000,000 Ending inventory , 5...

Step 1 Step 2 Physical Equivalent Flow of Production Units Units Beginning inventory 150 ...

The Fujita Company uses the FIFO process-costing method. Consider the following for July: Beginning inventory, 15,000 units,

Question:

The Fujita Company uses the FIFO process-costing method. Consider the following for July:

Beginning inventory, 15,000 units, 70 percent completed regarding direct materials, which cost ¥89,250,000.
Units completed, 80,000.
Cost of materials placed in process during July, ¥580,000,000.
Ending inventory, 5,000 units, 60 percent completed regarding materials.

Compute the direct materials cost per equivalent unit for the work done in July only.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...

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