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Can someone check my formulas and results for accurracy. I have 3 questions 1: is inventory in process correct. am i using 1-40% or just
Can someone check my formulas and results for accurracy. I have 3 questions
1: is inventory in process correct. am i using 1-40% or just 40%
2: how do I determine the cost charge to production or is there none since cooking department incurrs no costs
3: Do I have to allocate complete and partially completed units.
\fFIFO Costing Method John Davies Yummy Food Inc Cost of Production Report-Mixing Department For the Month Ended January 31 Units Units charged to production: Begnining Inventory in process, January 1 Unit Started Total units accounted for by the Filling Department = Beg inventory + units started in Jan Units to be assigned costs: Inventory in process, January 1 (use 40%) Started and completed in January Transferred to finished goods in January (Add Inv in process + Started and completed) = Inventory in process, as of January 31 use 60% that was completed Total units to be assigned costs/ Transferred + IIP Costs Costs per equivalent unit: [DMC/Units of Equivelant Production]+[conv costs/ units of Equiv production] Current Period Cost obtained from problem 450,000 in DM and 181,200 in CC total is the sum of both Total equivalent units= Cost per unit/Current period cost Cost per equivalent unit Costs charged to production: Inventory in process, January 1 Costs incurred in January which is DM=Conv Cost in D21 Total costs accounted for = Inv in process + cost incurred in Jan Cost allocated to completed and partially completed units: Inventory in process, January 1 balance = DM 28,560+CC 5,230 from problem To complete inventory in process, Jan Cost of completed January 1 work in process Started and completed in January Transferred to finished goods in January = Completed work in Jan left over + costs of work started and comp Inventory in process, January 31 = Inv in process X cost per equivalent unit Total costs assigned Question 2 In Cooking Department , there is no Direct Material Added hence it includes conversion cost where as in mixing department bo form the part of Total cost and need to be independtely calculated artment 31 Whole Units Direct Materials Equivalent Units Conversion Cost 5000 90000 95000 5000 84000 89000 0 84000 84000 6000 95000 6000 90000 Costs Direct Materials Conversion Cost Total Costs 450000 90000 5.00 181200 90600 2.00 3000 84000 87000 3600 90600 631200 7.00 33790 631200 664990 0 6000 420000 168000 30000 7200 33790 6000 39790 588000 627790 37200 664990 ng department both direct material cost and conversion cost are incurred andStep by Step Solution
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