Question

g Pix Company has the following production data for March: no beginning work in process, units started and completed 29,000, and ending work in process 3,300 units that are 100% complete for materials and 40% complete for conversion costs. Pix uses the FIFO method to compute equivalent units. If unit materials cost is $7 and unit conversion cost is $10. The total costs to be assigned are $529,300, prepare the cost section of the production cost report for Pix Company using the FIFO approach.

Answer 1

Pix Company

Production cost report - extract

Outputs

Units Costs

Costs assigned to completed units 29,000 $493,000

Units Still in Process 3,330 $36,630

Total 32,330 $529,630

Step-by-step explanation:

Step 1 : Equivalent Units of Production

Materials

To Finish Work in Process 0

Started and Completed (29,000 x 100%) 29,000

Ending Work in Process (3,330 x 100%) 3,330

Equivalent units of Production in Materials 32,330

Conversion Costs

To Finish Work in Process 0

Started and Completed (29,000 x 100%) 29,000

Ending Work in Process (3,330 x 100%) 1,332

Equivalent units of Production in Materials 30,332

Step 2 : Costs assigned to completed units and units still in process

Costs assigned to completed units = Units Completed x total units cost

= 29,000 x $17

= $493,000

Units Still in Process = Materials Cost + Conversion Costs

= 3,330 x $7 + 1,332 x $10

= $36,630