The Matsui Lubricants plant uses the FIFO method to account for its work-in-process inventories. The...
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Accounting
The Matsui Lubricants plant uses the FIFO method to account for its work-in-process inventories. The accounting records show the following information for a particular day:
Beginning WIP inventory
Direct materials
$ 962
Conversion costs
497
Current period costs
Direct materials
19,320
Conversion costs
14,994
Quantity information is obtained from the manufacturing records and includes the following:
Beginning inventory
600 units
(70% complete as to materials,
55% complete as to conversion)
Current period units started
5,500 units
Ending inventory
1,700 units
(50% complete as to materials,
20% complete as to conversion)
Required: FIFO Method
(1) Compute the equivalent units for the materials and conversion cost calculations.
Equivalent units for materials
----------------
Equivalent units for conversion costs
-----------------
(2) Compute the cost per equivalent unit for direct materials and for conversion costs using the FIFO method. (Round your answers to 2 decimal places.)
Cost Per Equivalent Unit
Direct materials
---------------
Conversion costs
----------------
*ANSWER needs to be filled in the space that is marked "-------------"
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