Question

Sheffield Company has the following production data for March: no beginning work in process, units started and completed 30,500, and ending work in process 5,400 units that are 100% complete for materials and 40% complete for conversion costs. Sheffield uses the FIFO method to compute equivalent units. If unit materials cost is $7 and unit conversion cost is $13, determine the costs to be assigned to the units transferred out and the units in ending work in process. The total costs to be assigned are $675,880.

Answer 1

Total Costs $ 675,880

Step-by-step explanation:

Costs EWIP

Ending work in process 5,400 units

Materials = 5,400* $ 7 = $ 37800

Conversion = 5400 * 40 % * $ 13= $ 28,080

We multiply the unit costs to the the equivalent units to get the costs of ending work in process.

Cost Units Completed

Units Completed 30,500

Materials = 30,500* $7= $ 213,500

Conversion = 30,500* $ 13 = $ 396500

Similarly we multiply the unit costs to the the completed units to get the costs.

Materials Conversion

EWIP $ 37800 $ 28,080

Units Completed $ 213,500 $ 396500

Total $ 251,300 $ 424 580

Total

Materials $215300

Conversion $ 424580

Total Costs $ 675,880

Now we add both costs to get the total costs which are equal to the given costs.