Kimbeth Manufacturing uses process costing to control costs in the manufacture o
ID: 2394932 • Letter: K
Question
Kimbeth Manufacturing uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November.
The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs. The ending inventory was 90% complete as to materials and 40% complete as to conversion costs.
Costs pertaining to November are as follows:
Beginning inventory: direct materials, 46,050; direct labor, $17,220; manufacturing overhead, $13,010.
Costs incurred during the month: direct materials, $400,400; direct labor, $156,160; manufacturing overhead, $332,330.
What is the equivalent unit cost for the conversion costs assuming Kimbeth uses first-in, first-out (FIFO) process costing? (Round your final answer to 2 decimal places.)
Kimbeth Manufacturing uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November.
Explanation / Answer
FIFO method Beggining units 17600 Transferred out 1,01,200 Started into production 110000 Ending units 26,400 127600 127600 Equivalent units Material Conversion Beginning units 17600 17600 Completion in current period 40% 80% A 7040 14080 Units started and completed 83600 83600 Completion 100% 100% B 83600 83600 Ending Units 26,400 26,400 Completion 90% 40% C 23760 10560 Total units A+B+C 114400 108240 Cost per equivalent units Per unit cost Cost Total units Per unit cost Material cost 400400 114400 3.50 Conversion cost 488490 108240 4.51 Total 888890 8.01
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