QUESTION: The firm uses a two department arrangement in the production of KPH, its leading product.All unitsare initiated in Department I and then transferred to Department II for completion. In Department II, direct labor and overhead are incurred evenly throughout the process, and when production is at the halfway point all of Ingredient L is added.On April first, there were 1,800 units in process in Department II, each unit 70% completed as to conversion cost, with the following costs.

Ingredient L cost$6,000

Conversion cost9,000

Transferred in cost10,000

Work in process, April 1$ 25,000

At the close of April there were 1,000 units in the work in process inventory, each unit 20% completed as to conversion cost.During April, 7,100 units were put into process in department II, while 7,400 units of KPH were completed as good product.April costs follow.

Ingredients L cost incurred$ 16,897

Conversion cost incurred44,460

Transferred from Department 134,435

Inspection is accomplished in Department II only at the conclusion of processing.The firm has established that normal spoilage is equal to five percent of good completed units.

Required: Using the first-in, first-out process costing method, calculate each of the amounts below.

Department II First in, First out Method

a. Conversion equivalent denominator units

b. Ingredient L equivalent denominator units

c. Transferred-in equivalent denominator units

d. Conversion cost per equivalent unit $

e. Direct material cost per equivalent unit. $

f. Transferred-in cost per equivalent unit $

g. Spoilage cost assigned to expense $

h. Total costs to complete units in beg work in process $

i. Total costs assigned to good completed units $

j.Ending balance of work in process $