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BigSmoker Incorporated produces hardwood pellets for barbecue aficionados. BigSmoker uses the first in , first out ( FIFO ) method of process costing. All direct
BigSmoker Incorporated produces hardwood pellets for barbecue aficionados. BigSmoker uses the first in first out FIFO method of process costing. All direct materials are assumed to be added at the beginning of the period, while conversion costs are added uniformly throughout production. BigSmoker had units in beginning workinprocess inventory on February During February, production was started on an additional units. Ending workinprocess EWIP at the end of February was units.
Management estimates that beginning workinprocess inventory was percent complete for direct materials and percent complete for conversion costs. Ending workinprocess inventory was estimated to be percent complete for direct materials and percent complete for conversion costs.
Costs incurred during January for February's beginning workinprocess BWIP units totaled $ for direct materials and $ for conversion costs.
During February, production costs included $ in direct materials and $ for conversion costs.
Required:
tablea How many units were completed in February?,b What are BigSmoker equivalent units for direct materials?,c What are BigSmoker equivalent units for conversion costs?,d What are the total costs to account for?,tablee What is the cost per equivalent unit for direct materials? Note: Do not round intermediatecalculations Round your final answer to decimals.tablef What is the cost per equivalent unit for conversion costs? Note: Do not round intermediatecalculations Round your final answer to decimals.tableg What is the average production cost of a unit started in January and completed inFebruary Note: Do not round intermediate calculations. Round your final answer to decimalstableh What is the cost of producing a complete unit in the current period? Note: Do not roundintermediate calculations. Round your final answer to decimals.tablei What is the cost of direct materials transferred out of production during the period? Note:Do not round intermediate calculations. Round your final answer to decimals.j What are the total conversion costs in ending workinprocess EWIP at the end of the,period Note: Do not round intermediate calculations. Round your final answer to decimals
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Lets solve the problem step by step a How many units were completed in February To find the number of units completed we use the following formula textUnits ...Get Instant Access to Expert-Tailored Solutions
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