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Easy Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company s first processing department for
Easy Inc. uses the FIFO method in its process costing system. The following data concern the operations of the companys first processing department for a recent month.
Work in process, beginning:
Units in process
Percent complete with respect to materials
Percent complete with respect to conversion
Costs in the beginning inventory:
Materials cost $
Conversion cost $
Units started into production during the month
Units completed and transferred out
Costs added to production during the month:
Materials cost $
Conversion cost $
Work in process, ending:
Units in process
Percent complete with respect to materials
Percent complete with respect to conversion
Required:
Using the FIFO method:
a Determine the equivalent units of production for materials and conversion costs.
b Determine the cost per equivalent unit for materials and conversion costs.
c Determine the cost of ending work in process inventory.
d Determine the cost of units transferred out of the department during the month. Please provide formulas to determine how answer was found
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