Question
The following information is available for Department A for the month of January: Units Cost Work in process, January 1 (70% complete as to conversion)
The following information is available for Department A for the month of January:
|
| Units | Cost |
| Work in process, January 1 (70% complete as to conversion) | 10,000 |
|
| Direct materials |
| $ 36,000 |
| Direct labor |
| 18,000 |
| Manufacturing overhead |
| 24,000 |
| Total work in process, January 1 |
| $ 78,000 |
| Started in production during January | 40,000 |
|
| Costs added: |
|
|
| Direct materials |
| $108,000 |
| Direct labor |
| 48,000 |
| Manufacturing overhead |
| 60,600 |
| Total costs added during January |
| $216,600 |
| Work in process, January 31 (80% complete as to conversion) | 4,000 |
|
Materials are added at the end of the process.
Required:
A. How many units were completed during the period?
Answer the following using the FIFO method:
B. What are the equivalent units for materials and conversion costs for the period?
C. What is the cost per equivalent unit for materials and conversion cost for the period?
D. What is the total cost of units completed and transferred out during the period?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
