IMG_4740.jpeg Open with Preview The assembly division of Fenton Watches, Inc. uses the FIFO method of process costing. Consider the following data for the month of May 2017 :: (Click the icon to view the data.) (Click the icon to view the equivalent unit computation.) Requirement Summarize the total costs to account for calculate the cost per equivalent unit for direct materials and conversion costs, and assign costs to units completed (and transferred out) and to units in ending work in process. Begin by summarizing the total costs to account for Total Direct Conversion Production Costs Materials Costs Total costs to account for Next, calculate cost per equivalent unit for direct materials and conversion costs. Direct Conversion Materials Costs Divide by Cost per equivalent unit Finally, assign total costs to units completed (and transferred out) and to units in ending work in process (WIP). Begin by calculating the total from beginning inventory, then calculate the total costs accounted for. Total Direct Conversion Costs Production Costs Materials Completed and transferred out: The assembly division of Fenton Watches, Inc. uses the FIFO method of process costing. Consider the following data for the month of May 2017: (Click the icon to view the data.) (Click the icon to view the equivalent unit computation.) Requirement Summarize the total costs to account for calculate the cost per equivalent unit for direct materials and conversion costs, and assign costs to units completed (and transferred out) and to units in ending work in process. Reference Data table Conversion Costs $67,350 Equivalent Units Direct Conversion Materials Costs Flow of Production Physical Units Direct (Watches) Materials Beginning work in process (May 19 110 $543,000 Started in May 2017 515 Completed during May 2017 465 Ending work in process (May 31) 160 Total costs added during May 2017 $3,690,000 Degree of completion: direct materials, 70%: conversion costs, 50% Degree of completion direct materials, 65%: conversion costs, 36%. Completed and transferred out during current period: From beginning work in process Started and completed 33 55 $1,211,600 355 355 104 Work in process, ending 56 Equivalent units of work done in current period 492 466 Print Done Print Done The assembly division of Fenton Watches, Inc. uses the FIFO method of process costing. Consider the following data for the month of May 2017: E (Click the icon to view the data.) (Click the icon to view the equivalent unit computation.) Requirement Summarize the total costs to account for calculate the cost per equivalent unit for direct materials and conversion costs, and assign costs to units completed (and transferred out) and to units in ending work in process. Next, calculate cost per equivalent unit for direct materials and conversion costs. Direct Conversion Materials Costs Divide by Cost per equivalent unit Finally, assign total costs to units completed (and transferred out) and to units in ending work in process (WIP). Begin by calculating the total from beginning inventory, then calculate the total costs accounted for. Total Direct Conversion Production Costs Materials Costs Completed and transferred out: Total from beginning inventory Total costs of units completed and transferred out Total costs accounted for
