Equivalent Units and Product Cost ReportFIFO Method In its first months operations (January 2019), Allred Companys Department 1 incurred charges of $120,000 for direct materials (10,000 units), $33,000 for direct labor, and $58,000 for manufacturing overhead At month end, 8,800 units had been finished and transferred out The remaining units were finished with respect to materials but only 25 complete with respect to conversion costs Assuming Allred uses the FIFO method and that materials are added at the beginning of the process and conversion costs occur evenly, compute the following The equivalent units for material and conversion The cost per equivalent unit for material and conversion The total cost assigned to the units transferred out The total cost assigned to the ending inventory Prove that your solutions to requirements (c) and (d) sum to the total costs to be accounted for Allred Company, Department 1 Equivalent Units Calculations, January 2019 Equivalent Units in Direct in January Materials January Conversion Costs 0 Complete Transferred Beginning inventory Started completed Ending inventory Total 0 0 0 0 oooo 0 $ Product Cost Report Direct Conversion Materials Costs Beginning Inventory 0 $ Current Total Costs to Account For 0 $ 0 $ 0 Total Equivalent Units 0 Average cost Equivalent unit O b $ Beginning inventory Costs incurred in Month 0 $ Costs incurred in Month 1 Started and finished 0 Cost of Goods Manufactured $ O c Ending Inventory Direct Materials Conversion costs 0 Cost of Ending Inventory $ 0 d Total Costs Allocated $ 0 e ooo

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Equivalent Units and Product Cost ReportFIFO Method In its first months operations (January 2019), Allred Companys Department 1 incurred charges of $120,000 for direct materials

Equivalent Units and Product Cost ReportFIFO Method

In its first months operations (January 2019), Allred Companys Department 1 incurred charges of $120,000 for direct materials (10,000 units), $33,000 for direct labor, and $58,000 for manufacturing overhead. At month-end, 8,800 units had been finished and transferred out. The remaining units were finished with respect to materials but only 25% complete with respect to conversion costs.

Assuming Allred uses the FIFO method and that materials are added at the beginning of the process and conversion costs occur evenly, compute the following:

The equivalent units for material and conversion.
The cost per equivalent unit for material and conversion.
The total cost assigned to the units transferred out.
The total cost assigned to the ending inventory.
Prove that your solutions to requirements (c) and (d) sum to the total costs to be accounted for.

Allred Company, Department 1 Equivalent Units Calculations, January 2019 Equivalent Units % in Direct % in January Materials January Conversion Costs 0 % Complete/Transferred Beginning inventory Started & completed Ending inventory Total 0 % 0% 0% 0 % oooo 0 $ Product Cost Report Direct Conversion Materials Costs Beginning Inventory 0 $ Current Total Costs to Account For 0 $ 0 $ 0 - Total Equivalent Units 0 Average cost / Equivalent unit O b. $ Beginning inventory Costs incurred in Month 0 $ Costs incurred in Month 1 Started and finished 0 Cost of Goods Manufactured $ O c. Ending Inventory: Direct Materials Conversion costs 0 Cost of Ending Inventory $ 0 d. Total Costs Allocated $ 0 e. ooo