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Based on the anwser bellow, How much cost will you transfer to the next WIP department using the FIFO method? Weighted average method: category Total
Based on the anwser bellow, How much cost will you transfer to the next WIP department using the FIFO method?
Weighted average method:
category | Total units | Equivalent units | |
Direct meterial | Convertion | ||
products completed During the month | 240,000+31,000-21,000 =250,000 | 250,000 | 250,000 |
Ending work in process | 21,000 | 6,300 | 12,600 |
Equivalent cost per unit | |||
Total cost | Equivalent units | Equivalent cost per unit | |
Direct meterial | 1,250,000+135,000=1,385,000 | 256,300 | 5.404 |
Convertion | 210,000+48,000+586,000 =844,000 | 262,600 | 3.214 |
Total cost of each category | |||
Direct meterials | convertion | total | |
Products completed in the month | 5.404*250,000=1,351,000 | 3.214*250,000=803,500 | 2,154,500 |
Ending WIP | 6300*5.404=34,045.2 | 12,600*3.214=40,496.4 | 74,541..6 |
FIFO method:
category | Total units | Equivalent Units | |
Direct meterial | Convertion Cost | ||
Begining Work in process | 31,000 | 12,400 (remaining 40%) | 18,600 (remaining 60%) |
Units started and completed | 240,000-21,000 219,000 | 219,000 | 219,000 |
Ending Work in process | 21,000 | 6,300 (30% completed) | 12,600 (60% completed) |
Total | 237,700 | 250,200 | |
Equivalent cost per unit | |||
total cost | Equivalent units | Equivalent cost per unt | |
direct meterial | 1,250,000 | 237,700 | 5.26 |
convertion | 634,000 | 250,200 | 2.534 |
Total cost of each category | |||
Direct meterials | convertion cost | total | |
Begining work in process comleted in may | 135,000+(5.26*12,400) =200,224 | 210,000(18,600*2.534) =257,132.4 | 457,356.4 |
Started and completed | 219,000*5.26=1,151,940 | 219,000*2.534=554,946 | 1,706,886 |
Ending Work in process | 6,300*5.26=33,138 | 12,600*2.534=31,928.4 | 65,066.4 |
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