Connect Access Card For Fundamentals Of Cost Accounting
6th Edition
ISBN: 9781260708738
Author: William N. Lanen Professor, Shannon Anderson Associate Professor, Michael W Maher
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 8, Problem 21E
Compute Equivalent Units: FIFO Method
Refer to the data in Exercise 8-20.
Required
- a. Compute the equivalent units for materials using FIFO.
- b. Compute the equivalent units for conversion costs using FIFO.
8-20 Compute Equivalent Units: Weighted-Average Method
- a. Pierce & Company provides the following information concerning the work in process at its plant:
- b. Beginning inventory was partially complete (materials are 100 percent complete; conversion costs are 40 percent complete).
- c. Started this month, 252,000 units.
- d. Transferred out, 210,000 units.
- e. Ending inventory, 140,000 units (materials are 100 percent complete; conversion costs are 45 percent complete).
Required
- a. Compute the equivalent units for materials using the weighted-average method.
- b. Compute the equivalent units for conversion costs using the weighted-average method.
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Students have asked these similar questions
Indigo Company uses weighted-average process costing and adds materials at the beginning of the process and conversion costs are incurred uniformly throughout the process. Complete the following calculation of equivalent units of production for materials and conversion costs.
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Phisical Units
Materials
Convertion Cost
Completed and Transferred
48,000
????
????
Ending work in process inventory
????
????
????
Materials
????
????
????
Convertion Cost, 75% complete
????
????
14,400
Total Units
????
????
????
a. Based on the data in Exercise 20-7 (Attachment), determine the following for March:1. Direct materials cost per equivalent unit2. Conversion cost per equivalent unit3. Cost of the beginning work in process completed during March4. Cost of units started and completed during March5. Cost of the ending work in processb. Assuming that the direct materials cost is the same for February and March, did the conversion cost per equivalent unit increase, decrease, or remain the same in March?
Beginning work in process (30% complete)
Direct materials
Conversion cost
Total cost of beginning work in process
Number of units started
Number of units completed and transferred to finished goods
Ending work in process (65% complete)
Current period costs
Direct materials
Conversion cost
Total current period costs
Required:
1. Using FIFO method of process costing, complete each of the following steps:
a. Reconcile the number of physical units worked on during the period.
b. Calculate the number of equivalent units.
c. Calculate the cost per equivalent unit.
d. Reconcile the total cost of work in process.
Complete this question by entering your answers in the tabs below.
Req 1A
Req 1B
Req 1C
Beginning Inventory
Started and Completed
Ending Inventory
Total
Using FIFO method of process costing, calculate the number of equivalent units.
Equivalent Units
Req 1D
Physical Units
0
Direct Materials
0
Units
127,800
233,000
333,800
?
Conversion
0
Costs
$ 182,000
334,000
$ 516,000
$ 497,400…
Chapter 8 Solutions
Connect Access Card For Fundamentals Of Cost Accounting
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