FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Using FIFO compute for the Equivalent unit for Finishing Department.
BETTERER Engine Corporation manufactures a single model of gasoline engine used in lawn mowers, portable genereators and pumps. The basic engine block is cast from steel and machined in the Casting Department. Then it is trasferred to the Assembly Department, where the crank shaft, valves and other component parts are added. After assembly, it it transferred to the finishing department where the engine is tested. Data related to February operations are:
Quantity data: | Casting | Assembly | Finishing |
WIP, beg | 500 | 1,000 | 300 |
Stage of completion |
25% | 50% | 50% |
TransferredtonextDept |
2,700 | 2,900 | 2,800 |
WIP, end | 800 | 800 | 400 |
Stage of Completion | 90% | 40% | 50% |
Cost data: | |||
WIP, beg | |||
Cost from preceding dept | 63,150 | 42,840 | |
Materials | 10,925 | 40,258 | |
Direct labor | 338 | 12,426 | 2,760 |
FOH | 2,839 | 12,426 | 4,140 |
Materials | 146,575 | 116,480 | |
Direct Labor | 16,362 | 44,408 | 12,240 |
FOH | 48,461 | 44,408 | 18,360 |
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