Question

During April, the first production department of a process manufacturing system completed its work on 300,000 units of a product and transferred them to the next department. Of these transferred units, 60,000 were in process in the production department at the beginning of April and 240,000 were started and completed in April. April's beginning inventory units were 60% complete with respect to materials and 40% complete with respect to conversion. At the end of April, 82,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion.

The production department had $850,368 of direct materials and $649,296 of conversion costs charged to it during April. Also, its beginning inventory of $167,066 consists of $118,472 of direct materials cost and $48,594 of conversion costs. Using the FIFO method, prepare the direct materials cost and the conversion cost per equivalent unit and assign April's costs to the department's output. (Round "Cost per EUP" to 2 decimal places.) Equivalent Units of Production (EUP)- FIFO Method Units EUP- % EUP- Materials Materials Conversion Conversion 0 Materials Conversion Equivalent units of production Cost per Equivalent Unit of Production Cost of beginning goods in process Total costs - Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Total Costs to Account for: Costs EUP Costs EUP 0 0 $ 0.00 $ 0.00 Total costs to account for: Total costs accounted for * Difference due to rounding cost/unit Assignment of Costs to Output of Department Cost of 60,000 units from beginning inventory Beginning inventory EUP Cost per EUP Total cost Materials to complete Conversion to complete Total costs to complete Total cost of 60,000 units in beginning inventory $ 0.00 EUP Cost of units started and completed this period Direct materials Conversion costs Total cost of 240,000 units started and completed Total cost of 300,000 units transferred out Cost per EUP Total cost $ 0.00 $ 0.00 $ 0.00 0.00 FUP Costs of units in ending inventory Direct materials Conversion costs Total cost of 82,000 units in ending inventory Total costs assigned Cost per Total cost EUP Total cost $ 0.00 $ 0.00 $ 0.00 0.00

Answer 1

total cost per EUP during April:

• materials = $2.58
• conversion costs = $2.16
• total cost per EUP during April = $4.74

total cost of ending WIP = $222,384

total cost of units transferred out = $1,444,346

Step-by-step explanation:

beginning WIP 60,000 units:

60% complete for materials, so 40% was completed during April (EUP for April = 24,000)

40% complete for conversion costs, so 60% was completed during April EUP for April = 36,000)

total costs of beginning WIP:

materials $118,472

conversion costs $48,594

240,000 units were started and completed

total costs incurred during April:

materials $850,368 (EUP = 240,000)

conversion costs $649,296 (EUP = 240,000)

ending WIP 82,000 units:

80% complete for materials (EUP = 65,600)

30% complete for conversion costs (EUP = 24,600)

total cost per EUP during April:

materials = $850,368 / (24,000 + 240,000 + 65,600) = $2.58

conversion costs = $649,296 / (36,000 + 240,000 + 24,600) = $2.16

total cost per EUP during April = $4.74

total cost of ending WIP = (65,600 x $2.58) + (24,600 x $2.16) = $222,384

total cost of units transferred out = (240,000 x $4.74) + (24,000 x $2.58) + (36,000 x $2.16) + $118,472 + $48,594 = $1,444,346