The Cutting Department of Cruz Manufacturing has the following production and cost data for July.

Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Cruz Manufacturing uses the FIFO method to compute equivalent units.

Instructions

(a) Determine the equivalent units of production for i 1 ) materials and (2) conversion costs.

(b) Compute unit costs and show the assignment of manufacturing costs to units trans- Ferred out and in work in process

Transcribed Image Text:

Production 1. Started and completed 9,000 units. 2. Started 1,000 units that are 40% completed at July 31. Costs Beginning work in process Materials Labor $ -0- 45,000 14,000 Manufacturing overhead 18,900