Problem 1 Cameron Company manufactures a chew toy product in a two-stage production process. Beef by-products and other secret ingredients are brought into the Preparation Department where they are chopped and mixed. Prepared products are then moved to the Finishing Department where the mixture is formed into small bone-shaped pieces and air dried. The following data is given for the Preparation Department for April:

Units for April: Work in process, beginning inventory April 1: 625 units Direct materials (65% complete), Conversion (45% complete)

Units started in April: 2,325 units

Work in process, ending inventory April 30: 400 units Direct materials (75% complete) Conversion (40%)

Costs for April: Work in process, beginning inventory: Direct materials $10,750 Conversion $8,625

Costs added during April: Direct materials $35,300 Conversion $27,400

a. Determine the equivalent units of production for April using FIFO.

b. What is the FIFO cost assigned to the ending inventory?

c. What is the FIFO cost assigned to the units transferred out?