Problem:
1. Pylonic Mfg. produces concrete garden border sections. All material is added at the beginning of processing. Production and cost information for May 2010 are as follows:
WA EUP
Direct material ............160,000 sections
Direct labor ...............152,000 sections
Overhead .................150,000 sections
FIFO EUP
Direct material .............120,000 sections
Direct labor .................124,000 sections
Overhead ...................132,000 sections
Beginning WIP Inventory costs
Direct material ............$19,600
Direct labor ............... 6,320
Overhead .................. 10,020
Current period costs
Direct material ............$54,000
Direct labor ................ 34,720
Overhead .................. 84,480
a. What is the total cost to account for?
b. Using weighted average process costing, what is the cost per equivalent unit for each cost component?
c. Using FIFO process costing, what is the cost per equivalent unit for each cost component?
d. How many units were in beginning inventory and at what percentage of completion was each cost component?