2 Information for the Nichols Manufacturing Company for the month of May is as f

Question

2 Information for the Nichols Manufacturing Company for the month of May is as follows: Cost of Inventory at process, May1 $5,010 Beginning work in process: Units, 800 Direct materials, 100% complete Conversion costs, 70% complete Units started in May, 14,000 Ending work in process inventory: Units, 1,500 Direct materials, 100% complete Conversion costs, 30% complete Costs charged to Work in Process during May Direct materials costs,$57,400 Direct labor costs, $20,049 Factory overhead costs, $30,073 a cost of production report for the month of May, using the FIFO method

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Equivalent Units Material Conversion Beginning Work in Process 800 0 240 add: Started and Completed (14000-1500) 12500 12500 12500 Transferred to Finished Goods 13300 12500 12740 Add:Closing Inventory 1500 1500 450 Total Units to be assigned Cost 14800 14000 13190 Cost Report: Direct Material Conversion Cost Total Cost in current Month 57400 50122 Total Equivalent Units 14000 13190 Cost per Equivalent Units (Cost/Unit) 4.1 3.8 Cost charged to production: Beginning Inventory 5010 Incurred in May 107522 Total Cost 112532 Cost Allocated to Completed and incomplete units: Beginning Inventory 5010 To completed incomplete inventory (240*3.8) 0 912 912 Started and completed in current month (12500)* Per unit 51250 47500 98750 Closing Inventory (1500 for material and 450 for conversion) 6150 1710 7860 Total Cost assigned 112532

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