Question

Asy inc. uses the FIFO method in its process costing system. The following data concem the operations of tres compaty's first processing department for a recent month. Required: Using the FIFO method:

a. Determine the equivalent units of production for materials and conversion costs:
b. Determine the cost per equlvalent unit for materials and conversion costs.
c. Determine the cost of ending work in process inventory.
d. Determine the cost of units transferred out of the department during the month.

Answer 1

To determine the equivalent units of production, cost per equivalent unit, cost of ending work in process inventory, and cost of units transferred out using the FIFO method in process costing.

Step-by-step explanation:

To determine the equivalent units of production for materials and conversion costs using the FIFO method, we need to calculate the units completed and transferred out, as well as the units in ending work in process inventory.

To determine the cost per equivalent unit for materials and conversion costs, we divide the total costs for each category by the equivalent units of production.

The cost of ending work in process inventory can be determined by multiplying the cost per equivalent unit by the equivalent units of production for that category. Finally, the cost of units transferred out of the department during the month is found by multiplying the cost per equivalent unit by the units completed and transferred out.