Topic: Average and FIFO Costing

added at two different stages in the Forming Department. Material A is added at the beginning of the process, and Material B is added at the end of the process. At the end of May, there were 600 units in process in the Forming Department, 50% complete as to labor and overhead. During June, 3,900 units were received from the cutting Department, and 4,100 units were completed and transferred to the Finishing Department. At the end of June, there were 400 units still in process in the Forming Problem 8 Nofat Co npany produces a product in three departments. The product is cut out of sheet me al in the Cutting Department, then transferred to the Forming Department , where it is bent to shape and certain parts purchased from outside vendors are added to the unit. Finally, the product is transferred to the Finishing Department where it is painted and packaged. The company uses a process costing system with an average elst flow assumption to account for its work in process inventories. Materials are 344 Cost Accounting Added this period Department, 30% complete as to labor and overhead. Cost data related to June operations in the Forming Department Costs charged to the department Beginning Inytys Cost from preceding dept. P 9,090 P 67.410 Material A 4.000 21.200 Material B 16,400 Conversion cost 17.550 P14.430 P 122.660 Requirements 1. Equivalent production for Material A, Materials B and conversion cost 2 Total costs of the units completed and transferred 3. Total costs of the units in process, end 1.340