50.00 polnts Jarvene Corporation uses the FIFO method in its process costing sys

Question

50.00 polnts Jarvene Corporation uses the FIFO method in its process costing system. The following data are for the most recent month of operations in one of the company's processing departments 3 380 Units in beginning inventory Units started into production Units in ending inventory Units transferred to the next department4360 270 MaterialsConversion Percentage completion of beginning 80% 20% Percentage completion of ending inventory 80% The cost of beginning inventory according to the company's costing system was $7,808, of which $4,825 was for materials and the remainder was for conversion cost. The costs added during the month amounted to $182,304. The costs per equivalent unit for the month were Materials Conversion 518.00 Cost per equivalent unt $24.00 Required: e the total cost per equivalent unit for the month. (Round your answer to 2 decimal places.) 2. Compute the equivalent units of material and of conversion in the ending inventory. 3. Compute the equivalent units of material and of conversion that were required to complete the beginning inventory 4 Determine the number of units started and completed duning the month 5. Determine the costs of ending invetory and units transfermed ou cost of ending inva ntory- cost of units tanstened out2 1/2

Explanation / Answer

Equivalent units:

1. Total cost of equivalent units of the month = 4272 * 18 + 4392 * 24 = $182,304

2. Ending equivalent units of material = 216 units and of conversion = 108 units

3. The equivalent units that is required to complete the beginning work in process

= Material =76 units and Conversion = 304 units

4, Number of units started and completed during the month = 3980 units (as per table presented)

5. The costs of ending inventory = 216 * 18 + 108 * 24 = $6480

The costs of units transferred out = Prior months costs on beginning WIP + Present month costs on beginning WIP + Present process costs on units introduced and completed during the month

= 7808 + (76 * 18 + 304 * 24) + (3980 * 18 + 3980 * 24) = $183632

Units Particulars Units Materials Conversion costs 380 Beginning work in process 380 76 (20%) 304 (80%) 4250 Units introduced and completed 3980 3980 (100%) 3980 (100%) Units transferred 4360 Ending work in process 270 216 (80%) 108 (40%) Equivalent units 4272 4392

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