Cornerstone Exercise 6.8 Cost Information and FIFOGunnison Company had the following equivalent units schedule and cost information for itsSewing Department for the month of December:Direct MaterialsConversion CostsUnits started and completedAdd: Units in beginning work in process XPercentage complete:5,000 x 0% direct materials40,00040,0005,000 x 50% conversion costs2,500Add: Units in ending work in process XPercentage complete:10,000 x 100% direct materials10,000 x 35% conversion costsEquivalent units of output10,0003,50050,00046,000Costs:Work in process, December 1:$ 35,00010,000Direct materialsConversion costsTotal work in process$ 45,000Current costs:Direct materials$400,000Conversion costs184,000S584,000Total current costsRequired:1. Calculate the unit cost for December, using the FIFO method.2. Calculate the cost of goods transferred out, calculate the cost of EWIP, and reconcile thecosts assigned with the costs to account for.3. What if you were asked for the unit cost from the month of November? Calculate Novem-ber's unit cost and explain why this might be of interest to management.

Name: Cornerstone Exercise 6.8 Cost Information and FIFOGunnison Company ha
Uploaded: 2024-03-20T06:32:49.000Z
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Description: Cornerstone Exercise 6.8 Cost Information and FIFOGunnison Company had the following equivalent units schedule and cost information for itsSewing Department for the month of December:Direct MaterialsConversion CostsUnits started and completedAdd: Un