Question

Name: Class: Date: Chapter 20 - Extra Credit Problem Ca manufactures a product called AWOL in a three-process series. All materials are introdud 1. Amazon Co. manufactures a product called AWOL ses the first-in, first-out method of inventory costing. Unit and sare introduced at the beginning of the first process. Amazon uses the first-in, first-out method of invent cost data for the first process (Department A) for the month of March 2017 follow: Units Completion Cost 242,048 29,000 21,000 40% 70% Conversion Work in process inventory: March 1 March 31 Direct materials cost Conversion cost Completed in March 474,880 175,005 62,000 (1) Prepare Amazon's Department A cost of production report for March (2) Compare the February and March cost per equivalent unit for direct materials and conversion, given the March 1 beginning inventory cost of direct materials was $210,960. V4

Answer 1

(1)

	Physcial units	Materials	Conversion
Work in Process Beginning	29000
Started during the period	54000
To account for	83000
Work in Process Beginning	29000	0	17400
Units started and completed	33000	33000	33000
Units transferred to next department	62000	33000	50400
Ending Work in Process :	21000	21000	14700
Accounted for	83000
Equivalent units		54000	65100
	Materials	Conversion	Total
Cost added during the period	$        4,74,880	$      1,75,005	$       6,49,885
Equivalent units of Production	54000	65100
Cost per equivalent unit	$               8.79	$              2.69	$            11.48
	Materials	Conversion	Total
Ending work in Process Inventory
Equivalent units of Production	21000	14700
Cost per equivalent unit	$               8.79	$              2.69
Cost of Ending work in Process Inventory	$        1,84,676	$         39,517	$       2,24,193
	Materials	Conversion	Total
Units Completed and transferred out
Cost of Beginning Work in Process	$                    -	$                  -	$          23,175
Cost of work on Beginning Work in Process	$                    -	$         46,776	$          46,776
Total Cost of Beginning WIP			$          69,951
Units started and completed	33000	33000
Cost per equivalent unit	$               8.79	$              2.69
Cost of units started and completed	$       2,90,205	$         88,712	$       3,78,917
Cost of units transferred out			$       4,48,867
Reconciliation
Costs to be accounted for :
Cost of beginning work in process inventory	$           23,175
Costs added to the production during the year	$        6,49,885
Total Costs to be accounted for	$        6,73,060
Cost of Ending work in Process Inventory	$        2,24,193
Cost of units transferred out	$        4,48,867
Total Costs accounted for	$        6,73,060

2.

	Materials	Conversion
Beginning WIP Cost per unit	$               7.27	$              2.68
Cost per unit Current	$               8.79	$              2.69