Question
Direct Material 1 Direct Material 2 Conversion costs % Complete Physical units Total $ Equivalent units $ Equivalent units $ Equivalent units $ Beginning balance
| Direct Material 1 | Direct Material 2 | Conversion costs | |||||||
| % Complete | Physical units | Total $ | Equivalent units | $ | Equivalent units | $ | Equivalent units | $ | |
| Beginning balance WIP | 30% | 3,000 | $7,000 | 3,000 | $6,000 | - | $0 | 900 | $1,000 |
| Units started (current costs) | 9,000 | $33,600 | 9,000 | $12,800 | 12,000 | $9,800 | 10,100 | $11,000 | |
| Total to account for | 12,000 | $40,600 | 12,000 | $18,800 | 12,000 | $9,800 | 11,000 | $12,000 | |
| Equivalent cost rates | |||||||||
| Units completed/Transferred out (COGM) | 7,000 | 7,000 | 7,000 | 7,000 | |||||
| Ending balance WIP | 80% | 5,000 | 5,000 | 5,000 | 4,000 | ||||
| Total to account for | 12,000 | 12,000 | 12,000 | 11,000 | |||||
Above is a partially completed process costing template that you can also download in excel Download download in excel
Assuming the company uses the FIFO method, calculate the equivalent cost rate of Direct Material 1
Enter your final answer to 2 decimal places.
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077400163
