Question

Danial Sdn Bhd (DSB) produces floor fan that passes through TWO (2) processing departments namely Assembly Department and Finishing Department. All direct materials are added at the beginning of the process in both departments. Meanwhile the conversion cost occurs uniformly throughout the production process. The following data is for the month of November 2019 for Finishing Department:

REQUIRED:

(a)Calculate units started into production.

(b)Calculate the equivalent units of production using the First In First Out (FIFO) method.

(c)Explain how prior-period cost are treated under the FIFO method in calculating cost per equivalent unit.

(d)Explain how equivalent unit is calculated under the weighted-average method.