Vacumatic, inc. uses the fifo method in its process costing system. the following data concern the operations of the company's first processing department, assembly, for a recent month.
work-in-process, beginning:
units in process 700
percent complete with respect to materials 50 %
percent complete with respect to conversion 10 %
costs in the beginning inventory:
materials cost $ 595
conversion cost $ 2,093
units started into production during the month 14,000
units completed and transferred out 14,600
costs added to production during the month:
materials cost $ 21,465
conversion cost $ 440,618
work-in-process, ending:
units in process 100
percent complete with respect to materials 60 %
percent complete with respect to conversion 60 %
required: using the fifo method:
a. determine the equivalent units of production for materials and conversion costs.
b. determine the cost per equivalent unit for materials and conversion costs.
c. determine the cost of ending work-in-process inventory.
d. determine the cost of units transferred out of the department during the month.