FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Daniel Manufacturing Company uses the FIFO costing method to account for their inventories. The following information pertains to operations for the month of May 2018:
Beginning work in process inventory, May 1 16,000 units
Started in production during May 100,000 units
Completed production during May 92,000 units
Ending work in process inventory, May 31 24,000 units
The beginning inventory was 60% complete for materials and 20% complete for conversion costs. The ending inventory was 90% complete for materials and 40% complete for conversion costs.
Costs pertaining to the month of May are the following:
The beginning inventory costs are: materials, P54,560; direct labor, P20,320; and
Costs incurred during May are: materials used, P468,000; direct labor, P182,880; and overhead, P391,160.
What are the equivalent units of production for materials, units of production for conversion costs, equivalent unit cost of materials for May, equivalent unit conversion cost for May and total cost of units in the ending work in process inventory at May 31?
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