Problem:
The Cutting Department of Keigi Manufacturing has the following production and cost data for August.
|
Production
|
Costs
|
|
1. Started and completed 8,000 units.
|
Beginning work in process
|
$ -0-
|
|
2. Started 2,000 units that are 40%
|
Materials
|
45,000
|
|
completed at August 31.
|
Labor
|
14,700
|
|
Manufacturing overhead
|
16,100
|
Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Keigi Manufacturing uses the FIFO method to compute equivalent units.
Instructions
(a) Determine the equivalent units of production for (1) materials and (2) conversion costs.
(b) Compute unit costs and show the assignment of manufacturing costs to units transferred out and in work in process.