Firenze, Inc., manufactures a product that goes through two departments prior to

Question

Firenze, Inc., manufactures a product that goes through two departments prior to completion—the Mixing Department followed by the Packaging Department. The following information is available about work in the first department, the Mixing Department, during June. Percent Completed Units Materials Conversion Work in process, beginning 76,000 70% 40% Started into production 375,500 Completed and transferred out 365,500 Work in process, ending 86,000 75% 25% Materials Conversion Work in process, beginning $ 29,000 $ 10,200 Cost added during June $ 310,700 $ 218,130

Explanation / Answer

cost of unit completed and transfered out =Beginning WIP+ Begginning WIP completed during the period +started and completed

           = [29000+10200] + 46694.4+415808.85

               = 501703.25

Ending WIP = 66338.25

Material Conversion Total Beginning WIP 22800       [76000*.30,Since70% is already completed] 45600    [76000*.60] started and completed during the period [365500-76000 from beginning WIP = 289500] 289500 289500 Ending WIP 64500     [86000*.75] 21500    [86000*.25] Equivalent unit 376800 356600 cost incurred during theperiod 310700/376800 = $ .8246 218130/356600=$ .6117 cost allocated to : Begginning WIP completed during the period .8246*22800= 18800.88 .6117*45600= 27893.52 46694.4 started and completed 289500*.8246= 238721.7 289500*.6117=177087.15 415808.85 Ending WIP 64500*.8246= 53186.7 21500*.6117= 13151.55 66338.25

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