Question:
(Comprehensive; FIFO; two departments) Keep In makes fencing in a two-stage production system. In the Cutting Department, wood is cut and assembled into 6-foot fence sections. In the Coating Department, the sections are pressure-treated to resist the effects of weather and then coated with a preservative. The following production and cost data are available for March 2010 (units are 6-foot fence sections):
|
Units
|
Cutting Dept.
|
Coating Dept.
|
|
Beginning WIP Inventory (March 1)
|
1,300
|
900
|
|
Complete as to material
|
80%
|
0%
|
|
Complete as to conversion
|
75%
|
60%
|
|
Units started in March
|
4,800
|
?
|
|
Units completed in March
|
?
|
4,500
|
|
Ending WIP Inventory (March 31)
|
1,100
|
?
|
|
Complete as to material
|
40%
|
0%
|
|
Complete as to conversion
|
20%
|
40%
|
|
|
|
|
Costs
|
|
|
|
Beginning WIP Inventory
|
|
|
|
Transferred in
|
n/a
|
$11,840
|
|
Material
|
$ 8,345
|
0
|
|
Conversion
|
7,720
|
1,674
|
|
Current
|
|
|
|
Transferred in
|
n/a
|
?
|
|
Material
|
35,200
|
4,950
|
|
Conversion
|
21,225
|
11,300
|
a. Prepare EUP schedules for both the Cutting and Coating Departments.
b. Determine the cost per EUP for the Cutting Department.
c. Assign costs to goods transferred out of and in ending WIP Inventory in the Cutting Department.
d. Determine the cost per EUP in the Coating Department. Use the modified FIFO basis and round to the nearest penny.
e. Assign costs to goods transferred out of and in ending WIP Inventory in the Coating Department.