Yarmouth Company produces a liquid solvent in two departments: Mixing and Finish

Question

Yarmouth Company produces a liquid solvent in two departments: Mixing and Finishing. Accounting records at Yarmouth show the following information for Finishing operations for February (no new material is added in the Finishing Department):

The ending inventory has 15,600 units, which are 60 percent complete with respect to Finishing Department costs and 100 percent complete for Mixing Department costs.

Required:
a. Complete the production cost report using the FIFO method. (Round "Cost per equivalent unit" to 2 decimal places.)

WIP inventory—Finishing Beginning inventory (11,600 units, 20% complete with respect to Finishing costs) Transferred-in costs (from Mixing) $ 143,200 Finishing conversion costs 7,664 Current work (101,200 units started) Mixing costs 1,052,480 Finishing costs 583,744 Yarmouth Company produces a liquid solvent in two departments: Moxing and Finishing. Accounting records at Yarmouth show the following information for Finishing operations for February (no new material is added in the Finishing Beginning inventory (11,600 units, 20% complete with respect to Finishing costs) Transferred-in costs (from Mixing) Finishing conversion costs Current work (101,200 units started) Mixing costs Finishing costs 141.200 The ending inventory has 15,600 units, which are 60 percent complete with respect to Finishing Department costs and 100 percent complete for Mixing Department costs. Required: a. Complete the production cost report using the FIFO method. (Round "Cost per equivalent unit" to 2 decimal places.)

Explanation / Answer

Solution :

Yarmouth Company Finishing department Computation of Equivalent unit (FIFO) Particulars Physical units Mixing Department Finishing Department Units to be accounted for: Beginning WIP Inventory 11600 Units started this period 101200 Total unit to be accounted for 112800 Units Accounted for: Units completed and transferred out From beginning inventory
Mixing - 0%
Finishing - 80% 11600 0 9280 Started and completed currently 85600 85600 85600 Units in ending WIP
Mixing - 100%
Finishing - 60% 15600 15600 9360 Total units accounted for 112800 101200 104240

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