Chapter 4 - Process Costing

Booger Kang has the following cost and production data for the month of April:

Beginning WIP 18,000 units

Started in production 100,000

Completed production 94,000

The beginning inventory was 60% complete for conversion costs. The ending inventory was 40% complete for conversion costs. Materials are added at the beginning of process.

Costs pertaining to the month of April are as follows:

Beginning inventory costs are:

Materials $65,000

Direct labour $20,000

Factory overhead $15,000

Costs incurred during April include:

Materials $550,000

Direct labour $195,000

Factory overhead $380,000

Required:

a) Calculate the equivalent units of production for (1) materials and (2) conversion costs for the month of April using the first-in, first-out (FIFO) method.

b) Calculate the unit costs for the month.

c) Determine the costs to be assigned to the units transferred-out and in ending wor

process.