Equivalent Units and Product Cost Report-FIFO Method In its first month of operations (May of 2019), Allred Company's Department 1 incurred charges of $72,000 for direct material (9,000 units), $38,700 for direct labor, and $13,500 for manufacturing Assuming Allred uses the FIFO method and that materials are added at the beginning of the process and conversion costs are incurred evenly throughout the period, compute the following: a. The equivalent units for materials and conversion costs. b. The cost per equivalent unit for materials and conversion costs. c. The total cost assigned to the units transferred out. d. The total cost assigned to the ending inventory e. 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, May 2019 Equivalent Units % in Direct 4 in May Materials May Conversion Costs Complete/Transferred Beginning inventory Started & completed Ending inventory Total a Conversion Costs Product Cost Report Direct Materials Beginning Inventory S Current Total Costs to Account For $ * Total Equivalent Units Average cost / Equivalent unit $ Beginning inventory 1 b. $ b. Product Cost Report Direct Materials Conversion Costs $ $ $ Beginning Inventory Current Total Costs to Account For $ $ $ $ b. $ b. - Total Equivalent Units Average cost / Equivalent unit Beginning inventory Costs incurred in Month O Costs incurred in Month 1 $ Started and finished Cost of Goods Manufactured $ C. $ Ending Inventory: Direct Materials Conversion costs Cost of Ending Inventory Total Costs Allocated $ d. $ e. Check Equivalent Units and Product Cost Report-FIFO Method In its first month of operations (May of 2019), Allred Company's Department 1 incurred charges of $72,000 for direct material (9,000 units), $38,700 for direct labor, and $13,500 for manufacturing Assuming Allred uses the FIFO method and that materials are added at the beginning of the process and conversion costs are incurred evenly throughout the period, compute the following: a. The equivalent units for materials and conversion costs. b. The cost per equivalent unit for materials and conversion costs. c. The total cost assigned to the units transferred out. d. The total cost assigned to the ending inventory e. 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, May 2019 Equivalent Units % in Direct 4 in May Materials May Conversion Costs Complete/Transferred Beginning inventory Started & completed Ending inventory Total a Conversion Costs Product Cost Report Direct Materials Beginning Inventory S Current Total Costs to Account For $ * Total Equivalent Units Average cost / Equivalent unit $ Beginning inventory 1 b. $ b. Product Cost Report Direct Materials Conversion Costs $ $ $ Beginning Inventory Current Total Costs to Account For $ $ $ $ b. $ b. - Total Equivalent Units Average cost / Equivalent unit Beginning inventory Costs incurred in Month O Costs incurred in Month 1 $ Started and finished Cost of Goods Manufactured $ C. $ Ending Inventory: Direct Materials Conversion costs Cost of Ending Inventory Total Costs Allocated $ d. $ e. Check
