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The Matsui Lubricants plant uses the FIFO method to account for its work-in-process inventories. The accounting records show the following information for a particular day:
The Matsui Lubricants plant uses the FIFO method to account for its work-in-process inventories. The accounting records show the following information for a particular day: |
Beginning WIP inventory | |||
Direct materials | $ | 1,890 | |
Conversion costs | 500 | ||
Current period costs | |||
Direct materials | 21,930 | ||
Conversion costs | 13,810 | ||
Quantity information is obtained from the manufacturing records and includes the following: |
Beginning inventory | 550 | units | (70% complete as to materials, 60% complete as to conversion) |
Current period units started | 3,500 | units | |
Ending inventory | 1,200 | units | (50% complete as to materials, 10% complete as to conversion) |
Required: |
Compute the cost per equivalent unit for direct materials and for conversion costs using the FIFO method. (Round your answers to 2 decimal places.) |
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