Refer to the information in Problem 17-34. Suppose that Larsen Corp. uses the FIFO method instead of the weighted-average method in all of its departments. The only changes to Problem 17-34 under the FIFO method are that total transferred-in costs of beginning work in process on October 1 are $2,881,875 (instead of $2,932,500) and that total transferred-in costs added during October are $7,735,250 (instead of $7,717,500).
In Problem 17-34.
REQUIRED
1. What is the percentage of completion for (a) transferred-in costs and direct materials in beginning work-in-process inventory and (b) transferred-in costs and direct materials in ending work-in-process inventory?
2. For each cost category, compute equivalent units in the Testing department. Show physical units in the first column of your schedule.
3. For each cost category, summarize total Testing department costs for October 2012, calculate the cost per equivalent unit, and assign total costs to units completed (and transferred out) and to units in ending work in process.
4. Prepare journal entries for October transfers from the Assembly department to the
Testing department, and from the Testing department to Finished Goods.
REQUIRED
Using the FIFO process-costing method, address the requirements of Problem 17-34.