Question

Pix Company has the following production data for March: no beginning work in process, units started and completed 30,500, and ending work in process 5,200 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 $4 and unit conversion cost is $12. The total costs to be assigned are $533,760, prepare the cost section of the production cost report for Pix Company using the FIFO approach.

Answer 1

Summary of costs to be accounted for

Costs to be accounted for: Materials Conversion Total

Beginning WIP 0 0 0

Costs incurred in the period $142,800 $390,960 $533,760

Total costs to be accounted for $142,800 $390,960 $533,760

Calculation of cost per equivalent unit

Materials Conversion Total

Total costs to be accounted for $142,800 $390,960 $533,760

Total equivalent units 35,700 32,580

Cost per equivalent unit $4 $12 $16

Cost allocation

Materials Conversion Total

Units finished and transferred $122,000 $366,000 $488,000

Ending WIP $20,800 $24,960 $45,760

Total costs to be accounted for $142,800 $390,960 $533,760

Step-by-step explanation:

beginning WIP 0 units

units started and completed 30,500

ending WIP 5,200

100% complete for materials

40% complete for conversion costs (2,080 EU)

total EU:

materials 35,700

conversion 32,580

total costs:

materials 35,700 x $4 = $142,800

conversion 32,580 x $12 = $390,960

total = $533,760