Question
LeStrange Industries, who uses the FIFO method of process costing, manufactures products in three sequential processes: Molding, Plating, and Finishing. In the Plating process, direct
LeStrange Industries, who uses the FIFO method of process costing, manufactures products in three sequential processes: Molding, Plating, and Finishing. In the Plating process, direct materials are added at the beginning of the process, while conversion costs are incurred evenly throughout the process. The normal spoilage rate in the Plating process is 2% of good units produced. LeStrange provided the following information about the Plating process in June:
Work-in-Process Inventory | Beginning | Ending |
Units | 1,200 | 800 |
Percent of Process Complete | 80% | 70% |
Costs Incurred | Beginning Work-in-Process | Current Period |
Transferred-In Costs | $1,800.00 | $10,735.00 |
Direct Materials Costs | $2,520.00 | $32,770.00 |
Conversion Costs | $1,178.00 | $13,560.00 |
Units | Started | Completed and Transferred Out |
Units | 6,200 | 6,300 |
Find the following:
Cost per equivalent unit for transferred-in costs:
Dollars
2)
Cost per equivalent unit for direct materials:
Dollars
3)
Cost per equivalent unit for conversion costs:
Dollars
4)
The value of good units completed and transferred out:
Dollars
5)
The value of abnormal spoilage:
Dollars
6)
The value of ending work in process inventory:
Dollars
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