Exercise 3-17 The Cutting Department of Lasso Company has the following producti
ID: 2341510 • Letter: E
Question
Exercise 3-17 The Cutting Department of Lasso Company has the following production and cost data for August. Costs . Started and completed 9,700 units. 2. Started 2,000 units that are 40% completed at August 31, Beginning work in process s0 49,140 13,600 20,525 Materials Manufacturing overhead Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Lasso Company uses the FIFO method to compute equivalent units Determine the equivalent units of production for (1) materials and (2) conversion costs The equivalent units of production Compute unit costs. (Round unit costs to 2 decimal places, e.g 2.25.) Unit costs Show the assignment of manufacturing costs to units transferred out and in work in process. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225. Anignment ef Cests Work in process, Aupust 3 Materials Conversion costs Click if you would like to Show Work for this question: Oeen Show Work Question Attempts: O of 15 used SAEFOR LATERExplanation / Answer
Answer
EUP - FIFO Method
Units
% Material
EUP Materials
% Conversion
EUP - Conversion
Units of ENDING WIP
2,000
100%
2,000
40%
800
Units STARTED & COMPLETED
9,700
100%
9,700
100%
9,700
Units of beginning WIP
-
0%
-
0%
-
Equivalent Units of Production
11,700 = Answer for Materials
10,500 = Answer for Conversion Cost
COST per EUP
Material
Conversion
Cost incurred this period
$ 49,140.00
$ 34,125.00
Total Costs
Costs
$ 49,140.00
Costs
$ 34,125.00
Equivalent units of production
EUP
11,700
EUP
10,500
Cost per EUP
$ 4.20
$ 3.25
Working---
Cost of Units started & completed this period:
EUP
Cost per EUP
Total Cost
- Direct Materials
9,700
$ 4.20
$ 40,740.00
- Conversion
9,700
$ 3.25
$ 31,525.00
Total costs started & Completed this period
$ 72,265.00
Total cost of Transferred out
$ 72,265.00 [used in answer below]
Costs of Ending WIP:
EUP
Cost per EUP
Total Cost
- Direct Materials
2,000
$ 4.20
$ 8,400.00
- Conversion
800
$ 3.25
$ 2,600.00
Total cost of ending WIP
$ 11,000.00 [used in answer below]
Total costs accounted for
$ 83,265.00
Answer [from data calculated in working]
Transferred out
$ 72,265
Work In Process Aug 31:
Materials
$ 8,400
Conversion Costs
$ 2,600
$ 11,000
Total costs
$ 83,265
EUP - FIFO Method
Units
% Material
EUP Materials
% Conversion
EUP - Conversion
Units of ENDING WIP
2,000
100%
2,000
40%
800
Units STARTED & COMPLETED
9,700
100%
9,700
100%
9,700
Units of beginning WIP
-
0%
-
0%
-
Equivalent Units of Production
11,700 = Answer for Materials
10,500 = Answer for Conversion Cost
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