Timmy€™s T-Shirts manufactures tie-dyed t-shirts for college sporting events. Each batch of shirts is identical and the costs of a batch are determined using process costing. The following information is related to the production process for the month of February.

Timmy€™s T-Shirts uses the FIFO method of computing equivalent units and assigning product costs. Production costs include both raw material and conversion costs, which are incurred uniformly in the production process.

Required
A. How many t-shirts were completed during February?
B. Of the t-shirts completed how many were started and completed during the month?
C. How many equivalent finished units did the company complete in February?
D. What is the cost per equivalent unit?
E. Calculate the cost of the ending work in process inventory and the cost of goods manufactured inFebruary.

Transcribed Image Text:

Number Production Beginning work in process (25% complete Current period production Ending work in process (70% complete) of Shirts 20,000 85,000 12,000 Costs $42,776 160,024