unnison Company had the following equivalent units schedule and cost information for its Sewing Department for the month of December: Direct Materials Conversion Costs Units started and completed 40,000 40,000 Add: Units in beginning work in process × Percentage complete: 5,000 × 0% direct materials — 5,000 × 50% conversion Costs 2,500 Add: Units in ending work in process × Percentage complete: 10,000 × 100% direct materials 10,000 — 10,000 × 35% conversion Costs — 3,500 Equivalent units of output 50,000 46,000 Costs: Work in process, December 1: Direct Material $35,000 Conversion Costs 10,000 Total work in process $45,000 Current costs: Direct Material $400,000 Conversion Costs 184,000 Total current costs $584,000 Required: 1. Calculate the unit cost for December, using the FIFO method. $fill in the blank 1 per equivalent unit 2. Calculate the cost of goods transferred out, calculate the cost of EWIP, and reconcile the costs assigned with the costs to account for.

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Chapter1: Financial Statements And Business Decisions
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Gunnison Company had the following equivalent units schedule and cost information for its Sewing Department for the month of December:

  Direct Materials         Conversion Costs
  Units started and completed 40,000   40,000
  Add: Units in beginning work in process ×      
         Percentage complete:      
         5,000 × 0% direct materials    
         5,000 × 50% conversion Costs     2,500
  Add: Units in ending work in process ×      
         Percentage complete:      
         10,000 × 100% direct materials 10,000  
         10,000 × 35% conversion Costs   3,500
  Equivalent units of output 50,000   46,000
  Costs:      
         Work in process, December 1:      
           Direct Material     $35,000
           Conversion Costs     10,000
           Total work in process     $45,000
         Current costs:      
           Direct Material     $400,000
           Conversion Costs     184,000
           Total current costs     $584,000

Required:

1. Calculate the unit cost for December, using the FIFO method.
$fill in the blank 1 per equivalent unit

2. Calculate the cost of goods transferred out, calculate the cost of EWIP, and reconcile the costs assigned with the costs to account for.

 

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