Engsbye Inc uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.
Work in process, beginning:
Units in process 200
Percent complete with respect to materials 80%
Percent complete with respect to conversion 10%
Costs in the beginning inventory
Materials cost $800
Conversion cost $406
Units started into production during the month 20,000
Units completed and transferred out 20,000
Costs added to production during the month:
Materials cost $96,000
Conversion cost $413,648
Work in process, ending:
Units in process 200
Percent complete with respect to materials 80%
Percent complete with respect to conversion 50%
REQUIRED:
Using the FIFO method, type in the correct answers below.
Alternatively you may create an Excel spreadsheet instead so you can use the add/subtract/ multiplication/division functions of excel. Remember to add a footer with your name, section# and ZID# to the excel spreadsheet if you decide to use one. Use the same file name as you would have for the word document file (except for the .xls file designation) SHOW ALL WORK and label everything clearly.:
a. Determine the equivalent units of production for materials and conversion costs.
b. Determine the cost per equivalent unit for materials and conversion costs.
c. Determine the cost of units transferred out of the department during the month.
d. Determine the cost of ending work in process inventory.