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1) Pet Products Company uses an automated process to manufacture its pet replica products. For June, the company had the following activities: Beginning work in
1) Pet Products Company uses an automated process to manufacture its pet replica products. For June, the company had the following activities:
Beginning work in process inventory | 4,500 items, 1/4 complete with regards to conversion costs |
Units placed in production | 15,000 units |
Units completed | 17,500 units |
Ending work in process inventory | 2,000 items, 3/4 complete with regards to conversion costs |
Cost of beginning work in process | Direct Materials = $3,000; Conversion Costs = $2,250 |
Direct material costs, current | $16,500 |
Conversion costs, current | $23,945 |
Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process. Compute the following using FIFO method:
- Units completed and transferred out.
- Total cost to account for.
- Equivalent units with respect to direct materials and conversion costs.
- Cost per direct materials equivalent units and cost per conversion cost equivalent units.
- Total cost assigned to units completed and transferred out.
- Total cost assigned to units in ending inventory.
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