BeGone manufactures spray cans of insect repellent. On August 1, 2010, the company had 9,800 units in the beginning WIP Inventory that were 100 percent complete as to canisters, 60 percent complete as to other materials, 40 percent complete as to direct labor, and 20 percent complete as to overhead. During August, BeGone started 81,500 units in the manufacturing process. Ending WIP Inventory included 4,600 units that were 100 percent complete as to canisters, 40 percent complete as to other materials, 20 percent complete as to direct labor, and 10 percent complete as to overhead. Assume that BeGone uses FIFO process costing method.
Cost information for the month is as follows:
a. Prepare a schedule showing the BeGone August 2010 computation of FIFO equivalent units of production.
Beginning WIP inventory
Canisters $6535
Other Materials $6174
Direct Labor $6431
Overhead $1070
August Costs
Canisters $61,940
OthervDirect Materials $86,793
Direct Labor $81,189
Overhead $160,176
b. Prepare a schedule showing the BeGone August 2010 computation of FIFO cost per equivalent unit.