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Ermoin Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department for a
Ermoin Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.
Work in process, beginning: | |||||
units in process | 700 | ||||
Percent complete with respect to materials | 50 | % | |||
Percent complete with respect to conversion | 10 | % | |||
Costs in the beginning inventory: | |||||
Materials cost | $ | 595 | |||
Conversion cost | $ | 2,093 | |||
Units started into production during the month | 14,000 | ||||
Units completed and transferred out | 14,600 | ||||
Costs added to production during the month: | |||||
Materials cost | $ | 21,465 | |||
Conversion cost | $ | 440,618 | |||
Work in process, ending: | |||||
Units in process | 100 | ||||
Percent complete with respect to materials | 60 | % | |||
Percent complete with respect to conversion | 60 | % | |||
Using the FIFO method: |
Required: | |
a. | Determine the equivalent units of production for materials and conversion costs. |
Materials | Conversion | |
Equivalent units of production | ||
b. | Determine the cost per equivalent unit for materials and conversion costs. (Round your answer to 2 decimal places.) |
Materials | Conversion | |
Cost per equivalent unit | $ | $ |
c. | Determine the cost of ending work in process inventory. |
Cost of ending work in process inventory | $ |
d. | Determine the cost of units transferred out of the department during the month. |
Cost of units transferred out | $ |
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