Belcher Company uses the FIFO method in its process costing system. The Finishing Department started the month
Question:
Belcher Company uses the FIFO method in its process costing system. The Finishing Department started the month with 600 units in process that were 10?% complete, received 3,000 units from the Assembly? Department, and transferred 3,100 units to the finished goods storage area. All materials are added at the beginning of the process and conversion costs occur evenly. The units in process at the end of the month are 5555?% complete with respect to conversion costs. The department incurred the following? costs: ( See table below) Compute the equivalent units of production for the Finishing Department for the current month. Complete table below:
Beginning balance | + | Transferred in | - | Transferred out | = | In process units |
600 | + | 3000 | - | 3100 | = | 500 |
Compute the equivalent units of production for the Finishing Department for the current month. Complete table below:
Belcher Company | ||||||||
Production Cost Report - Finishing Department | ||||||||
Equivalent Units | ||||||||
Whole | Transferred | Direct | Conversion | |||||
UNITS | Units | In | Materials | Costs | ||||
Units to account for: | ||||||||
Beginning work-in-process | 600 | |||||||
| ||||||||
Total units to account for | ||||||||
Units accounted for: | ||||||||
Completed and transferred out | ||||||||
Ending work-in-process | ||||||||
Transferred to Finished Goods | ||||||||
Total units accounted for |
Data Table
Beginning WIP | Added this month | Total | |
Transferred In | $6,960 | $34,800 | $41,760 |
Direct Materials | 900 | 4,500 | 5,400 |
Conversion Costs | 1,500 | 9,282 | 10,782 |
Total | $9,360 | $48,582 | $57,942 |
Managerial Accounting
ISBN: 978-0078111006
14th edition
Authors: Ray Garrison, Eric Noreen and Peter Brewer