1. The activity in Nolan Company's Blending Department for the month of April is given below:

	Number	Conversion
	of Units	Percent Completed
Work-in-process inventory, April 1	8,000	40%
Started into process during the month	50,000
Work-in-process inventory, April 30	10,000	70%

All materials are added at the beginning of processing in the Blending Department.

Use the FIFO method for the Blending Department for April. Show all calculations and indicate what your numbers represent.

Calculate the equivalent units for i) materials (3 marks)

ii) conversion (3 marks)

Equivalent Units

Materials Conversion

Using FIFO method, equivalent unit for materials:

Units accounted for:

Work in process, April 1

b) Roger Company uses the FIFO method in its process costing system. The Mixing department is the first department in the production process. Baking is the second department and Packaging is the third. The following data are taken from the accounting records of the Mixing department for June:

Calculate the cost of the 75,000 units transferred out of the department during June. Show your calculations. (6 marks)