Question

ULTUU CULTUrly. ILS PIUU Uutpul is sent to me next cepatu Alec products when processing begins. Beging work in process inventory is 20% complete with rer Direct Materials Conversion Equivalent Units of Production Units transferred out Units of ending work in process Equivalent units of production 42,000 EUP 42,000 EUP 3,500 EUP2, 100 EUP 45, 500 EUP 44,100 EUP Costs per EUP Costs of beginning work in process Costs incurred this period Total costs Direct Materials Conversion $ 32,950 $ 4,260 531,250 308,850 $564,200 $313, 110 Units in beginning work in process (all completed during July) Units started this period Units completed and transferred out Units in ending work in process 3,000 42,500 42,000 3,500 repare its process cost summary using the FIFO method. (Round "Cost per EUP" to 2 decimal place

Answer 1

Solution:

FIFO
Cost Charged to production
Total Cost of Beginning Work in process	$37,210
Total Costs incurred this period	$840,100
Total Cost to account for	$877,310
Total Cost Accounted for	$877,310
*Difference due to rounding cost/unit	$0
Unit Reconciliation
Units to account for:
Units in Beginning work in process	3000
Units Started this period	42500
Total Units to account for	45500
Total units Accounted for:
Units in Beginning work in process completed	3000
Units Started and Completed	39000
Units in ending work in process	3500
Total Units accounted for	45500
Equivalent units of production (EUP) - FIFO method
	Units	%Material	EUP-Material	% Conversion	EUP- Conversion
Beginning units completed this period (A)	3000	0%	0	80%	2400
Units Started and Completed (42000-3000) (B)	39000	100%	39000	100%	39000
units of Ending work in process (D)	3500	100%	3500	60%	2100
Equivalent units of production (C+D)			42500		43500
Cost per EUP			Material		Conversion
Costs incurred this period (Total Costs)		Costs	$531,250	Costs	$308,850
/Equivalent units of Production		EUP	42500	EUP	43500
Cost per Equivalent unit of Production			$12.50		$7.10
Cost Assignment and Reconciliation
Beginning Inventory Cost:				$37,210
Cost to Complete Beginning Inventory	EUP	Cost per EUP	Total Cost
Direct materials	0	$12.50	$0
Conversion	2400	$7.10	$17,040
Total Cost to complete Beginning Inventory				$17,040
Total Costs of units in Beginning Inventory				$54,250
Cost of units started and completed	EUP	Cost per EUP	Total Cost
Direct Material	39000	$12.50	$487,500
Conversion	39000	$7.10	$276,900
Total Cost of units started and completed				$764,400
Total cost of units transferred out				$818,650
Cost of ending work in process	EUP	Cost per EUP	Total Cost
Direct Material	3500	$12.50	$43,750
Conversion	2100	$7.10	$14,910
Total Ending work in process				$58,660
Total Costs accounted for				$877,310