Lalo Corporation is a manufacturer that uses a process cost accounting system, i

Question

Lalo Corporation is a manufacturer that uses a process cost accounting system, its accounting records for the month of January of the current year show the following. Direct materials arc added in the following manner: 80% at the very beginning of the process and 20% at the very end of the process. Conversion costs arc added evenly throughout the process. Using the attached sheets and the FIFO process costing method, prepare a cost of production report for the month of January. Round all costs per equivalent unit to four decimal places and all other dollar amounts to the nearest whole dollar. Using the attached sheets and the weighted average process costing method, prepare a cost of production report for the month of January. Round all costs per equivalent unit to four decimal places and all other dollar amounts to the

Explanation / Answer

statement of equivalent units:

material conversion

begining %

material 0 - -

conversion 40 - 1200

fresh complete 100 30500 30500

closing

materail 80 3600

conversion 70 3150

equivalent unit 34100 34850

statement of cost per equivalent unit

begining 4500 12000

during the month 55000 175000

total cost 59500 187000

cost per unit 1.7449 5.3659

cost of wip $6282 16903   

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