[The following information applies to the questions displayed below.] During Apr

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[The following information applies to the questions displayed below.]

During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 60,000 were in process in the production department at the beginning of April and 240,000 were started and completed in April. April's beginning inventory units were 60% complete with respect to materials and 40% complete with respect to conversion. At the end of April, 82,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion.

The production department had $850,368 of direct materials and $649,296 of conversion costs charged to it during April. Also, its beginning inventory of $167,066 consists of $118,472 of direct materials cost and $48,594 of conversion costs.

Using the FIFO method, prepare the direct materials cost and the conversion cost per equivalent unit and assign April's costs to the department’s output. (Round "Cost per EUP" to 2 decimal places.)

Equivalent Units of Production (EUP)- FIFO Method EUP Units % Conversion | Conversion % Materials EUP-Materials 100% 100% Units started and completed Units in ending work in process 82,000 80% 65,600 30% 24,600 82,000 Equivalent units of production Cost per Equivalent Unit of Production Costs incurred this period Total costs ÷ Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Total Costs to Account for: Direct materials prior period Conversion costs - prior period Direct materials current period Conversion costs - current period Total costs to account for Total costs accounted for Materials $ 850,368 $ 850,368 Conversion $649,296 $649,296 Costs Costs EUP EUP $ 118,472.00 48,594.00 850,368.00 649,296.00 $ 1,666,730.00 Difference due to rounding cost/unit 0.00

Explanation / Answer

Unit Reconciliation Units to account for: Beginning WIP                                    60,000 Started into Production (382,000 - 60,000)                                  322,000 Total units to account for                                  382,000 Total units accounted for Completed during the period (240,000 Units) Beginning WIP                                    60,000 Started & Completed                                  240,000 Ending WIP                                    82,000 Total units accounted for                                  382,000 Equivalent Units of Production (EUP) - FIFO Units % Material EUP-Materials % Conversion EUP-Conversion Completed during the period (240,000 Units)- Beginning WIP                                    60,000 40%                      24,000                     0.60             36,000 Started & Completed                                  240,000 100%                   240,000                     1.00           240,000 Ending WIP                                    82,000 80%                      65,600                     0.30             24,600 Equivalent Units of Production (EUP)                                  382,000                   329,600           300,600 Cost per EUP Materials Conversion Cost Incurred during the period                   850,368           694,296 Total Costs Costs                   850,368 Costs           694,296 Equivalent Units of Production (EUP) EUP                   329,600 EUP           300,600 Cost per Equivalent Units of Production                          2.58                  2.31 Total Cost to Account For: Direct Material - Prior Period                            118,472.00 Conversion Cost - Prior Period                              48,594.00 Direct Material - Current Period                            850,368.00 Conversion Cost - Current Period                            694,296.00 Total Cost to Account For                        1,711,730.00 Total costs accounted for                        1,711,730.00 Difference due to rounding cost/unit                                             -   Assignment of Costs to Output of Department: Cost of 60,000 Units from Beginning Inventory: Beginning Inventory:        167,066.00 EUP Cost per EUP Total Cost Material to Complete                                    24,000                                          2.58                61,920.00 Comversion to Complete                                    36,000                                          2.31                83,149.22 Total costs to Complete        145,069.22 Total Cost of 60,000 Units in Beginning Innventory        312,135.22 Cost of Units Started & Completed this period: EUP Cost per EUP Total Cost Direct Materials                                  240,000                                          2.58             619,200.00 Conversion                                  240,000                                          2.31             554,328.14 Total Cost of 240,000 Units Started & Completed    1,173,528.14 Total Cost of 300,000 Units Started & Completed    1,485,663.37 Costs of Units in Ending WIP EUP Cost per EUP Total Cost Direct Materials                                    65,600                                          2.58             169,248.00 Conversion                                    24,600                                          2.31                56,818.63 Total Cost of 82,000 units in Ending Inventory        226,066.63 Total costs accounted for    1,711,730.00

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