Data concerning a recent period\'s activity in the Assembly Department, the firs
ID: 341665 • Letter: D
Question
Data concerning a recent period's activity in the Assembly Department, the first processing department in a company that uses process costing, appear below: Conversion $ 650 Materials $ 3,900 Cost of work in process inventory at the beginning of the period Equivalent units of production in the ending work in process inventory Equivalent units of production required to complete the beginning 370 230 work in process inventory Cost per equivalent unit for the period 560 $ 3.20 1,200 $ .70 A total of 25,400 units were completed and transferred to the next processing department during the period. Beginning work in process inventory consisted of 1,400 units and ending work in process inventory consisted of 1,500 units Required: Using the FIFO method, compute the cost of the units transferred to the next department during the period and the cost of ending work in process inventory Materials Conversion Total Cost of the units transferred to the next department Cost of ending work in process inventoryExplanation / Answer
Cost of units transferred to the next department
Particulars
Materials
Conversion
No of Equivalent units completed and transferred:
Beginning WIP
560
1200
Equivalent Units started and completed
(25,400-1,400)
23,900
23,900
Total units completed and transferred
24,460
25,100
Cost per equivalent unit for the period
$3.20
$0.70
Cost of units transferred to the next department
$78,272
$17,570
Cost of ending work in progress
Equivalent units of ending WIP
370
230
Cost per equivalent unit for the period
$3.2
$0.7
Cost of ending work in progress
$1,184
$161
Cost of units transferred to the next department
$78,272
$17,570
Cost of ending work in progress
$1,184
$161
Cost of units transferred to the next department
Particulars
Materials
Conversion
No of Equivalent units completed and transferred:
Beginning WIP
560
1200
Equivalent Units started and completed
(25,400-1,400)
23,900
23,900
Total units completed and transferred
24,460
25,100
Cost per equivalent unit for the period
$3.20
$0.70
Cost of units transferred to the next department
$78,272
$17,570
Cost of ending work in progress
Equivalent units of ending WIP
370
230
Cost per equivalent unit for the period
$3.2
$0.7
Cost of ending work in progress
$1,184
$161
Cost of units transferred to the next department
$78,272
$17,570
Cost of ending work in progress
$1,184
$161
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