units conversion percentage complete beginning work in process inventory 10,000 20% units started 21,000 units completed and transferred out 26,000 Ending work in processs inventory 5,000 80% The conversion cost of the beginning inventory was $6,500. During the month, $112,000 in additional conversion cost was incurred. Required: a) Assume that the company uses the FIFO method. Compute the following: 1. The equivalent units of production for conversion for the month. 2. The cost per equivalent unit for conversion for the month. 3. The total cost transferred out during the month. 4. The cost assigned to the ending work-in-process inventory. b) Assume that the company uses the weighted-average cost method. Compute the following: 1. The equivalent units of production for conversion for the month. 2. The cost per equivalent unit for conversion for the month. 3. The total cost transferred out during the month. 4. The cost assigned to the ending work-in-process inventory.
units conversion percentage complete
beginning work in process inventory 10,000 20%
units started 21,000
units completed and transferred out 26,000
Ending work in processs inventory 5,000 80%
The conversion cost of the beginning inventory was $6,500. During the month, $112,000 in additional conversion cost was incurred.
Required:
a) Assume that the company uses the FIFO method. Compute the following:
1. The equivalent units of production for conversion for the month.
2. The cost per equivalent unit for conversion for the month.
3. The total cost transferred out during the month.
4. The cost assigned to the ending work-in-process inventory.
b) Assume that the company uses the weighted-average cost method. Compute the following:
1. The equivalent units of production for conversion for the month.
2. The cost per equivalent unit for conversion for the month.
3. The total cost transferred out during the month.
4. The cost assigned to the ending work-in-process inventory.
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