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Posted on May 14, 2024

UNITS: Work in process, beginning of period 4,250 (100% completed with D/M & 20% with C/C) Units started during month 17,500 Units completed during month

UNITS: Work in process, beginning of period 4,250 (100% completed with D/M & 20% with C/C) Units started during month 17,500 Units completed during month 16,500 Work in process at end of period 5,250 (100% completed with D/M & 60% with C/C) COSTS: Work in process, beginning: D/M $ 31,550 C/C 22,755 Direct material used during period 142,450 Conversion cost used during period 245,520 Departamento A 2/1/20 to 2/28/20 UNITS: Work in process, beginning of period 5,250 (100% completed with D/M & 60% with C/C) Units started during month 35,000 Units completed during month 33,000 Work in process at end of period 7,250 (100% completed with D/M & 60% with C/C) COSTS: Work in process, beginning: D/M $ 63,100 C/C 45,510 Direct material used during period 284,900 Conversion cost used during period 485,040 Required: Prepare cost reports (5 steps) for Coresut Manufacturing Department A for the months of January and February using the methods: Average and FIFO. Present the calculations made. Use four decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To prepare the cost reports for Coresut Manufacturing Department A using the average and FIFO methods we will follow these steps 1 Calculate the equivalent units for each month 2 Compute the unit costs for each month 3 Prepare the production cost report using the average method 4 Prepare the production cost report using the FIFO method 5 Analyze the differences between the average and FIFO methods Step 1 Calculate the equivalent units for each month January Equivalent units for direct material DM 16500 5250 21750 Equivalent units for conversion cost CC 16500 20 100 5250 60 100 3300 3150 6450 February Equivalent units for direct material DM 33000 7250 40250 Equivalent units for conversion cost CC 33000 60 100 7250 60 100 19800 4350 24150 Step 2 Compute the unit costs for each month January Unit cost for DM 31550 142450 21750 79977 per unit Unit cost for CC 22755 245520 6450 419130 per unit February Unit cost for DM 63100 284900 40250 86771 per unit Unit cost for CC 45510 485040 24150 219721 per unit Step 3 Prepare the production cost report using the average method January Average Method Completed Units Ending WIP Total Equivalent Units 16500 5250 21750 Direct Materials Cost 13196175 4148825 17345000 Conversion Cost 27083475 12044025 39127500 Total Cost 40279650 16192850 56472500 Unit Cost 244121 308440 February Average Method Completed Units Ending WIP Total Equivalent Units 33000 7250 40250 Direct Materials Cost 28944700 6255300 35200000 Conversion Cost 52895600 15908400 68804000 Total Cost 81840300 22163700 104004000 Unit Cost 248002 305400 Step 4 Prepare the production cost report using the FIFO method January FIFO Method Completed Units Ending WIP Total Equivalent Units 16500 5250 21750 Direct Materials Cost 13155000 4245000 17400000 Conversion Cost 25432500 13695000 39127500 Total Cost 38587500 17940000 56527500 Unit Cost 233864 341714 February FIFO Method Completed Units Ending WIP Total Equivalent Units 33000 7250 40250 Direct Materials Cost 29260000 5940000 35200000 Conversion Cost 49944000 18860000 68804000 Total Cost 79204000 24800000 104004000 Unit Cost 240012 342069 Step 5 Analyze the differences between the average and FIFO methods The main differences between the average and FIFO methods are 1 Unit cost of completed units In January the unit cost ... blur-text-image