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During? September, the Filtering Department of Downtown? Center, Inc. had a begi

ID: 2534353 • Letter: D

Question

During? September, the Filtering Department of Downtown? Center, Inc. had a beginning

Workminus?inminus?Process

Inventory of

400400

units with costs of

$ 77 comma 000$77,000.

During the?month,

700700

units were transferred in from the Milling Department with costs of

$ 219 comma 000$219,000.

It had

400400

units in ending

Workminus?inminus?Process

Inventory. What is the cost per equivalent unit of production for the transferred in units that were transferred to the Filtering Department in September under the

firstminus??in,

firstminus?out

?(FIFO) method??(Round your answer to the nearest? cent.)

A.

$ 81.25$81.25

per equivalent unit of production for transferred in

B.

$ 70.00$70.00

per equivalent unit of production for transferred in

C.

$ 1.00$1.00

per equivalent unit of production for transferred in

D.

$ 312.86$312.86

per equivalent unit of production for transferred in

Explanation / Answer

Answer is $ 312.86 per equivalent unit

Explanation:

UNITS TO ACCOUNT FOR: Beginning Work in Process units 400 Add: Units Started in Process 700 Total Units to account for: 1,100 UNITS TO BE ACCOUNTED FOR: Units completed from Beginning WIP 400 Units started and completed 300 Ending Work in Process 400 Total Units to be accounted for: 1,100 Equivalent Units: Transferred in cost % Completion Units Units completed from Beg. WIP 0% 0 Units started and completed 100% 300 Ending Work in Process 100% 400 Total Equivalent units 700 COST PER EQUIVALENT UNIT: Transferred in cost Total cost added during the year 219,000 Equivalent Units 700 Cost per Equivalent unit 312.86