Question

Required information Use the following information for the Quick Study below. The following information applies to the questions displayed below.J The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 10,900 units during November. The following production activity unit and cost information refers to the assembly department's November production activities Percent of Direct Materials Added Percent of Conversion Assembly Department Beginning work in process Units transferred out Ending work in process Units 2, 500 9, 500 3,900 60% 100% 80% 40% 100% 30% Beginning work in process $1,477 (includes $944 for direct materials inventory-Assembly dept and $533 for conversion) Costs added during the month: Direct materials Conversion $11,676 $15,472

Answer 1

working notes - 1. equivalent units

	units	direct material	convrsion
begining WIP transf.	2500	1000	1500
current period	9500	9500	9500
units in ending WIP	3900	3120	1170
total units		13620	12170

2. cost per equivalent unit-

	material	conversion
total cost incurred	11676	15472
no. of units	13620	12170
cost per unit	0.86	1.27

carlberg company

fifo method

cost of units transferred out-
cost of beggining work in proces inventory		1477
cost to complete begining work in process-
direct material 1000*0.86	860
conversion 1500*1.27	1905
total cost to complete		2765
cost of units started and completed this year
direct material 9500*0.86	8170
conversion 9500*1.27	12065
total cost of units started and completed		20235
total cost of units transferede out		24477
cost of ending work in process
direct material 3120*0.86	2683.2
conversion 1170*1.27	1485.9
total cost of ending		4169.1
total cost assigned		28646.1