Question
Jones Company manufactures a single product and uses process costing (FIFO method). The companys product goes through two processing departments, Etching and Wiring. The following
Jones Company manufactures a single product and uses process costing (FIFO method). The companys product goes through two processing departments, Etching and Wiring. The following activity was recorded in the Etching Department during July:
Production data: | |||
Units in process, July 1 (materials 60% complete; conversion 30% complete) | 50,000 | ||
Units started into production | 500,000 | ||
Units in process, July 31 (materials 80% complete; conversion 40% complete) | 60,000 | ||
Cost data: | |||
Work in process inventory, July 1: | |||
Materials cost | $ | 17,000 | |
Conversion cost | $ | 3,000 | |
Cost added during July: | |||
Materials cost | $ | 457,200 | |
Conversion cost | $ | 349,300 | |
Materials are added at several stages during the etching process. The company uses the FIFO method.
Required:
1. Compute the equivalent units of production.
2. Compute the costs per equivalent unit for July. (Round your answers to 2 decimal places.)
3. Determine the cost of ending work in process inventory and of the units transferred to the Wiring Department. (Round your intermediate calculations to 2 decimal places.)
4. Prepare a cost reconciliation between the costs determined in requirement 3 above and the cost of beginning inventory and costs added during the period. (Round your intermediate calculations to 2 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started