Question

Yarmouth Company produces a liquid solvent in two departments: Mixing and Finishing. Accounting records at Yarmouth show the following information for Finishing operations for February (no new material is added in the Finishing Department): WIP inventory—Finishing Beginning inventory (11,200 units, 20% complete with respect to Finishing costs) Transferred-in costs (from Mixing) $ 134,320 Finishing conversion costs 1,096 Current work (100,400 units started) Mixing costs 1,004,000 Finishing costs 537,056

The ending inventory has 15,200 units, which are 60 percent complete with respect to Finishing Department costs and 100 percent complete for Mixing Department costs.

Yarmouth Company produces a liquid solvent in two departments: Mixing and Finishing. Accounting records at Yarmouth show the following information for Finishing operations for February (no new material is added in the Finishing Department):

WIP inventory—Finishing
Beginning inventory (11,200 units, 20% complete with respect to Finishing costs)
Transferred-in costs (from Mixing)	$	134,320
Finishing conversion costs		1,096
Current work (100,400 units started)
Mixing costs		1,004,000
Finishing costs		537,056

The ending inventory has 15,200 units, which are 60 percent complete with respect to Finishing Department costs and 100 percent complete for Mixing Department costs.

Required:
a. Complete the production cost report using the FIFO method. (Round "Cost per equivalent unit" to 2 decimal places.)

Physical Units Equivalent Units Mixing Department Finishing Department Flow of units: Units to be accounted for: Beginning WIP inventory Units started this period Total units to account for 0 Units accounted for: Completed and transferred out From beginning WIP inventory Mixing Finishing Started and completed currently Units in ending WIP inventory Mixing Finishing Total units accounted for 0 0 0

Total Mixing Department Finishing Department Flow of costs: Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for $0 $0 $0 Cost per equivalent unit Mixing Finishing Costs accounted for: Costs assigned to units transferred out: Costs from beginning WIP inventory Current costs added to complete beginning WIP inventory Mixing Finishing Current costs of units started and completed: Mixing Finishing Total costs transferred out $0 $0 $0 Cost of ending WIP inventory Mixing Finishing Total costs accounted for $0 $0 $0

Answer 1

Solution Production Cost Report Physical Units Equivalent Units Mixing 1 Finishing Department Department 11,200 100,400 111,600 Flow of units: Units to be accounted for: Beginning WIP inventory Units started this period Total units to account for Units accounted for: Completed and transferred out From beginning WIP inventory Mixing Finishing Started and completed currently Units in ending WIP inventory Mixing Finishing Total units accounted for 11,200 8,9601 85,200 85,200 85,200 15,200 15,200 9,120 103,280 111,600 100,400 Total Mixing Department Finishing Department $135,416 $1,541,056 $1,676,472 $134,320 $1,004,000 $1,138,320 $1,096 $537,056 $538,152 $10.00 $5.201 $134,320 $1,096 Flow of costs: Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for Cost per equivalent unit Mixing Finishing Costs accounted for: Costs assigned to units transferred out: Costs from beginning WIP inventory Current costs added to complete beginning WIP inventory Mixing Finishing Current costs of units started and completed: Mixing Finishing Total costs transferred out Cost of ending WIP inventory Mixing Finishing Total costs accounted for $135,416 $46,592 $0 $46,592 $1,295,040 $852,000 $443,040 $490,728 $986,320 $1,477,048 $199,424 $152,000 $1,676,472 $1,138,320 $47,424 $538,152

To see the formulas, please see the below images:

в 1 Solution Production Cost Report Physical Units Equivalent Units Mixing Finishing Department Department 6 8 9 11200 100400 =SUM(C8:09) 11 12 13 Flow of units: Units to be accounted for Beginning WIP inventory Units started this period Total units to account for Units accounted for: | Completed and transferred out From beginning WIP inventory Mixing Finishing Started and completed currently Units in ending WIP inventory Mixing | Finishing Total units accounted for =C8 14 15 1 =C13 8096 =C1610096 16 -C16*100% -C9-C17 15200 17 18 |=C17*100% 19 SUM(C13:C19) SUM(D13:019) =C17*6096 SUM(E13:E19) 20 21

22 Total Mixing Finishing Department Department 23 Flow of costs: 24 Costs to be accounted for: 25 Costs in beginning WIP inventory -SUM(D25:E25) 134320 1096 26 Current period costs -SUM(D26:E26) 1004000 5 37056 27 Total costs to be accounted for =SUM(C25:C26) =SUM(D25:D26) =SUM(E25:E26) 28 Cost per equivalent unit 29 Mixing =D26/D20 30 Finishing 1=E26/E20 31 Costs accounted for: 32 | Costs assigned to units transferred out: 33 Costs from beginning WIP inventory =SUM(D33:E33) =D25 =E25 34 Current costs added to complete beginning WIP inventory 1=D35+E36 35 Mixing 1=D14 D29 Finishing =E1530 Current costs of units started and completed: 38 Mixing =D16*D29 39 | Finishing =E16E30 40 | Total costs transferred out =SUM(C33:C39) I=SUM(D33:D39) ESUM(E33:39) 41 Cost of ending WIP inventory =D42+E43 421 Mixing =D18*029 43 Finishing =E19E30 44 Total costs accounted for =SUM(C40:C43) =SUM(D40:D43) =SUM(E40:E43) 45 36