um Yum Meat Company uses a process costing system. The following information relates to

one month's activity in the company's Curing Department:

Conversion

Percentage

Units

Complete

Beginning work in process inventory

10,000

20%

Units started

21,000

Units completed and transferred out

26,000

Ending work in process inventory

5,000

80%

The conversion cost of the beginning inventory was $6,500. During the month, $112,000 in

additional conversion cost was incurred.

Required:

a) Assume that the company uses the FIFO method. Compute the following:

1. The equivalent units of production for conversion for the month. (2Marks)

2. The cost per equivalent unit for conversion for the month. (1 Mark)

3. The total cost transferred out during the month. (3 Marks)

4. The cost assigned to the ending work-in-process inventory. (2 Marks)

b) Assume that the company uses the weighted-average cost method. Compute the following:

1. The equivalent units of production for conversion for the month. (1 Mark)

2. The cost per equivalent unit for conversion for the month. (2 Marks)

3. The total cost transferred out during the month. (1 Mark)

4. The cost assigned to the ending work-in-process inventory. (2Marks)

Question 2. (14 Marks) YumYum Meat Company uses a process costing system. The following information relates to one month's activity in the company's Curing Department: Conversion Percentage Units Complete Beginning work in process inventory 10,000 20% Units started 21,000 Units completed and transferred out 26,000 Ending work in process inventory 5,000 80% The conversion cost of the beginning inventory was $6,500. During the month, $112,000 in additional conversion cost was incurred. Required: a) Assume that the company uses the FIFO method. Compute the following: 1. The equivalent units of production for conversion for the month. (2Marks) 2. The cost per equivalent unit for conversion for the month. (1 Mark) 3. The total cost transferred out during the month. (3 Marks) 4. The cost assigned to the ending work-in-process inventory. (2 Marks) b) Assume that the company uses the weighted-average cost method. Compute the following: 1. The equivalent units of production for conversion for the month. (1 Mark) 2. The cost per equivalent unit for conversion for the month. (2 Marks) 3. The total cost transferred out during the month. (1 Mark) 4. The cost assigned to the ending work-in-process inventory. (2Marks)