5. Problem 8-52 (Algo) FIFO Method (LO 8-5)

The following information is available from the Oils Division of Glasgow Corporation for December. Conversion costs for this division were 80 percent complete as to beginning work-in-process inventory and 60 percent complete as to ending work-in-process inventory. Information about conversion costs follows.

	Units			Conversion Costs
WIP at December 1 (80% complete)		112,000		$	443,520
Units started and costs incurred during December		552,000			2,628,480
Units completed and transferred to next department during December		412,000			?

The Oils Division uses FIFO.

Required:

a-1. Compute the equivalent units for conversion costs.

a-2. Compute the cost per equivalent unit for conversion costs.

a-3. What was the conversion cost of work-in-process inventory in the Oils Division at December 31?

b. What were the conversion costs per equivalent unit produced last period and this period, respectively?

Complete this question by entering your answers in the tabs below.

• Req A1
• Req A2
• Req A3
• Req B

A1. Compute the equivalent units for conversion costs.

Compute the equivalent units for conversion costs.

Equivalent units

A2. Compute the cost per equivalent unit for conversion costs. (Round your answer to 2 decimal places.)

Cost per equivalent unit

A3. What was the conversion cost of work-in-process inventory in the Oils Division at December 31? (Do not round intermediate calculations.)

Conversion cost

B. What were the conversion costs per equivalent unit produced last period and this period, respectively? (Round your answers to 2 decimal places.)

	Cost Per Unit
Previous period
Current period

6.

Exercise 8-43 (Algo) Prepare a Production Cost Report: Weighted-Average Method (LO 8-2, 4)

Yarmouth Company produces a liquid solvent in two departments: Mixing and Finishing. Accounting records at Yarmouth show the following information for Finishing operations for February (no new material is added in the Finishing Department).

WIP inventoryFinishing
Beginning inventory (11,700 units, 20% complete with respect to Finishing costs)
Transferred-in costs (from Mixing)	$	145,470
Finishing conversion costs		11,233
Current work (101,400 units started)
Mixing costs		1,064,700
Finishing costs		586,587

The ending inventory has 15,700 units, which are 50 percent complete with respect to Finishing Department costs and 100 percent complete for Mixing Department costs.

Required:

Complete the production cost report using the weighted-average method. (Round "Cost per equivalent unit" to 2 decimal places.)

Exercise 8-43 (Algo) Prepare a Production Cost Report: Weighted-Average Method (LO 8-2, 4)

Yarmouth Company produces a liquid solvent in two departments: Mixing and Finishing. Accounting records at Yarmouth show the following information for Finishing operations for February (no new material is added in the Finishing Department).

WIP inventoryFinishing
Beginning inventory (11,700 units, 20% complete with respect to Finishing costs)
Transferred-in costs (from Mixing)	$	145,470
Finishing conversion costs		11,233
Current work (101,400 units started)
Mixing costs		1,064,700
Finishing costs		586,587

The ending inventory has 15,700 units, which are 50 percent complete with respect to Finishing Department costs and 100 percent complete for Mixing Department costs.

Required:

Complete the production cost report using the weighted-average method. (Round "Cost per equivalent unit" to 2 decimal places.)