Exercise 8-33 & 8-34 (LO 8-5) The Matsui Lubricants plant uses the FIFO method t

Question

Exercise 8-33 & 8-34 (LO 8-5)

The Matsui Lubricants plant uses the FIFO method to account for its work-in-process inventories. The accounting records show the following information for a particular day:

Quantity information is obtained from the manufacturing records and includes the following:

References

Section BreakExercise 8-33 & 8-34 (LO 8-5)

4.

value:
16.66 points

Required information

Exercise 8-33 Compute Costs per Equivalent Unit: FIFO Method (LO 8-5)

Required:

(1) Compute the equivalent units for the materials and conversion cost calculations.

Beginning WIP inventory Direct materials $ 980 Conversion costs 302 Current period costs Direct materials 12,208 Conversion costs 7,788

Explanation / Answer

1) Compute the equivalent units for the materials and conversion cost calculations.

Material cost per equivalent unit = 12208/3815 = 3.2 per equivalent unit

Conversion cost per equivalent unit = 7788/3540 = 2.2 per equivalent unit

Units % EUP-material % EUP-conversion Beginning wip 550 30% 165 40% 220 Units started and completed 3100 100% 3100 100% 3100 Ending work in process 1100 50% 550 20% 220 Total 4750 3815 3540

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