Question
CloverSweet Inc. manufactures a product that goes through two departments prior to completion. The information shown in the table below is available about work in
CloverSweet Inc. manufactures a product that goes through two departments prior to completion. The information shown in the table below is available about work in the first department, the Mixing Department, during June:
Percentage Completed | |||||||||
Units | Materials | Conversion | |||||||
Work in process, beginning | 22,000 | 80 | % | 25 | % | ||||
Started into production | 475,000 | ||||||||
Completed and transferred out | 453,000 | ||||||||
Work in process, ending | 44,000 | 50 | % | 30 | % | ||||
Materials | Conversion | |||||
Work in process, beginning | $ | 17,500 | $ | 16,500 | ||
Cost added during June | $ | 476,000 | $ | 163,000 | ||
Required:
Assume that the company uses the FIFO method.
1. Determine the equivalent units for June for the first process.
Materials Conversion
Equivalent units of production
2. Compute the costs per equivalent unit for June for the first process. (Round your answers to 3 decimal places.)
Materials conversion
Cost per equivalent unit
3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in June. (Round intermediate calculations to 3 decimal places.)
Materials Conversion Total
Cost of ending work in process inventory
Cost of Units transferred out
4. Prepare a report that reconciles the total costs assigned to the ending work in process inventory and the units transferred out with the costs in beginning inventory and costs added during the period. (Round intermediate calculations to 3 decimal places.)
Costs to be accounted for
Costs of beginning work in process inventory
Costs added to production during the period
Total costs to be accounted for $
Costs accounted for as follows
Costs of ending work in process inventory
Costs of units transferred out
Total cost accounted for $
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