Question

Daosta Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.

Work in process, beginning:
Units in process		900
Percent complete with respect to materials		40	%
Percent complete with respect to conversion costs		20	%
Costs in the beginning inventory:
Materials cost	$	530
Conversion cost	$	2108
Units started into production during the month		16,000
Units completed and transferred out		16,000
Costs added to production during the month:
Materials cost	$	32,180
Conversion cost	$	416,512
Work in process, ending:
Units in process		900
Percent complete with respect to materials		50	%
Percent complete with respect to conversion costs		70	%

Required:

Using the FIFO method:

Equivalent Units of Production for Direct materials	(Do not enter commas in answer for example 5,000 should be entered as 5000)
Equivalent Units of Production for Conversion Costs	(Do not enter commas in answer for example 5,000 should be entered as 5000)
Cost per Equivalent Unit – Direct Materials	$ (Round to 2 decimal places)
Cost per Equivalent Unit – Conversion Costs	$ (Round to 2 decimal places)
Total value of Ending Work in Process	$.00 (Round to the nearest whole dollar and do not enter dollar signs or commas in answer for example $5,000 should be entered as 5000)
Total value of units transferred out	$.00 (Round to the nearest whole dollar and do not enter dollar signs or commas in answer for example $5,000 should be entered as 5000)

Answer 1

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Daosta Inc.					Started and completed in same month
Cost of Production Report-first processing department					Goods finished in same month-	16,000.00
For the Month Ended		Equivalent Units		Less: Opening work in process	900.00
Unit information	Physical Units	Materials	Conversion		Started and completed in same month	15,100.00	B
Units charged to production:
Beginning Inventory in process	900.00
Units started into production during the month	16,000.00
Total units accounted for by the Roasting Department	16,900.00
Units to be assigned costs:
Beginning Inventory in process	900.00	540.00	720.00	60% material and 80% conversion is completed in this month.
Started and completed in same month	15,100.00	15,100.00	15,100.00	See Note B
Units completed and transferred out	16,000.00	15,640.00	15,820.00
Ending Inventory in process	900.00	450.00	630.00	50% material and 70% conversion is completed in this month.
Total equivalent units of production	16900	16090	16450	This is answer 1.
Cost Information				Total
Costs per equivalent unit
Costs added to production during the month		32,180.00	416,512.00
Total equivalent units		16,090.00	16,450.00
Cost per equivalent unit		2.00	25.32	This is answer 2.
Costs assigned to production:
Costs in the beginning inventory:		530.00	2,108.00	2,638.00
Costs incurred in the month		32,180.00	416,512.00	448,692.00
Total costs accounted for by the Roasting Department				451,330.00
Costs allocated to completed and partially completed units
Beginning Inventory in process				2,638.00
To complete Beginning Inventory in process		1,080.00	18,230.31	19,310.31
Cost of completed Beginning Inventory in process				21,948.31
Started and completed in same month		30,200.00	382,330.16	412,530.16
Transferred out costs in the month				434,478.48	This is answer 4.
Ending Inventory in process		900.00	15,951.52	16,851.52	This is answer 3.
Total costs assigned by the Department				451,330.00