Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a department uses the fifo method of process costi

A department uses the FIFO method of process costing. All direct materials are added at the...

Free

70.2K

Verified Solution

Question

Accounting

A department uses the FIFO method of process costing. All directmaterials are added at the beginning of the process. Thisdepartment has the following data for this month.

  • 200 units in beginning WIP (51% complete with respect toconversion costs).
  • 10,652 units started
  • 123 units in ending WIP (36% complete with respect toconversion costs).
  • $1,411 beginning WIP direct materials costs
  • $2,481 beginning WIP conversion costs
  • $107,056 current month direct materials costs
  • $87,452 current month conversion costs

What is the department's direct material cost per equivalentunit for this month (round final answer to nearest cent ifnecessary)?

Answer & Explanation Solved by verified expert
4.2 Ratings (615 Votes)

Answer-------------Department's direct material cost per equivalent unit for this month= $10.05

Working

STEP 1 (FIFO)
Reconciliation of Units
Units % already completed % completed this period
Material Conversion cost Material Conversion cost
Beginning WIP                   200 100% 51% 0% 49%
Units introduced             10,652
Total units to be accounted for             10,852
Completed and Transferred unit             10,729 0% 0% 100% 100%
Ending WIP                   123 0% 0% 100% 36%

.

STEP 2 (FIFO)
Equivalent Units
Total Units Material Conversion cost
Units Transferred: % completed this period Equivalent Units % completed this period Equivalent Units
From WIP                   200 0%                             -   49%                                98
From units started/Introduced             10,529 100%                   10,529 100%                        10,529
Total             10,729                   10,529                        10,627
Total Units Material Conversion cost
Ending WIP % completed this period Equivalent Units % completed this period Equivalent Units
Total                   123 100%                         123 36%                                44
Total EUP             10,852                   10,652                        10,671

.

Material
Cost incurred in Current Period $ 107,056
Total Equivalent Units 10,652
Cost per Equivalent Units $ 10.05

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The lysine decarboxylase test medium contained 5 grams of lysine and 1 gram of glucose per...

Biology
Q

Find the second virial coefficient for the Dieterici equation of state p = (RT/V-b) exp (-a/RTV)

Chemistry
Q

Describe ways that CRISPR and microarray experiments could be used to study and/or treat coronavirus infections like...

Medical Sciences
Q

2 A beam of light composed of red and green ray is incident obliquely at...

Physics
Q

on the Circle the Equation Given the center and a Point Find the equation of...

Geometry
Q

Interest is compounded semianually Find the amount in the account after the given time Principal...

Basic Math
Q

Given the functions f(x) = 1/x^2+3x with the domain {x|x ?-3 and x ?...

Basic Math
Q

Prepare an income statement for the year ended December 31.(Round your final...

Accounting
Q

How would Honda classify its partially completed vehicles? A. Supplies O B. Raw materials C....

Accounting
Q

Problem 5-6 Nash Inc. had the following balance sheet at December 31, 2016 NASH INC....

Accounting
Q

Please see below, do I still add this to my January Journal even though I...

Accounting
Q

A new piece of equipment at Dalton Manufacturing is $40000 in current $.The company has...

Finance