Dana Inc. uses the FIFO method in its process costing system. The following data

Question

Dana Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company’s first processing department for a recent month. Work in process beginning: Units in process 600 Percent complete with respect to materials 50 % Percent complete with respect to conversion 30 % Costs in the beginning inventory: Materials cost $550 Conversion cost $2,120 Units started into production during the month 20,000 Units completed and transferred out 20,000 Costs added to production during the month: Materials cost $45,135 Conversion cost $524,680 Work in process,ending: Units in process 600 Percent complete with respect to materials 60 % Percent complete with respect to conversion 60 %

Required: Using the FIFO method: a. Determine the equivalent units of production for materials and conversion costs

. Equivalent Units of Production Materials(?) Conversion(?)

b. Determine the cost per equivalent unit for materials and conversion costs. (Do not round intermediate calculations and final answers to 2 decimal places.) Cost per Equivalent Unit Materials $ Conversion $

c. Determine the cost of ending work in process inventory. (Do not round intermediate calculations. Omit the "$" sign in your response.) Cost of ending WIP $

d. Determine the cost of units transferred out of the department during the month. (Do not round intermediate calculations. Omit the "$" sign in your response.) Cost of units transferred out $

Explanation / Answer

Schedule Showing Physical Units of Production Particulars Units   Opening Work in Progress                  600 Started into the production             20,000             20,600 Complted and Trasnfered             20,000 Closing Work in Progress                  600             20,600 Equivalent Units (FIFO) Equivalent Units Particulars Units   Materials   Conversion Cost Materials Conversion Cost Opening                  600 50% 70%                  300                    420 Transferred             20,000 100% 100%             20,000               20,000 Closing                  600 60% 60%                  360                    360 Totals             20,660               20,780 Cost Per Unit of Equivalent Units Particulars Materials   Conversion Cost Opening: Material Cost                  550             4,947 Transferred Cost             43,781         508,940 (45135*19400/20000 ) & (524680*19400/20000) Closing                  812             9,444 ((45135*600/20000)*60% ) & ((524680*600/20000)*60%) Total Cost             45,143         523,331 Cost per Equivalent Unit                 2.19             25.18 Cost of Ending Work in Progress Particulars Materials   Conversion Cost Cost of Closing WIP                  812             9,444 ((45135*600/20000)*60% ) & ((524680*600/20000)*60%) Total                  812             9,444 Cost per Unit Transferred Units Transferred 1)           20,000 Total Cost 2)         568,474 Cost per Equivalent Unit 2)/1)             28.42

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