Taco Ranch uses a process cost system and the FIFO cost flow assumption. Production begins in the

Crafting Department where materials are added at the beginning of the process and conversion costs are

incurred uniformly throughout the process. On November 1, the beginning Work in Process inventory

consisted of 10,000 units which were 60% completeand had a cost of $190,000, $100,000 of which were

materials costs. During November, the following occurred:

Materials added $225,000

Conversion costs incurred $45,000

Units completed and transferred out in November 40,000

Units in ending Work in Process November 30 (20% complete) 25,000

Instructions

Answer the following questions and show the computations that support your answers.

a) What are the equivalent units of production for materials and conversion costs in the Crafting

Department for the month of November?

b) What are the costs assigned to the ending Work in Process inventory on November 30?

c) What are the costs assigned to units completed and transferred out during November?