Millie Company produces a product that passes through an assembly process and a finishing process. All manufacturing costs are added uniformly for both processes. The following information was obtained for the assembly department for June:
a. WIP, June 1, had 24,000 units (60 percent completed) and the following costs:
Direct materials ..........$186,256
Direct labor .............64,864
Overhead applied ...........34,400
b. During June, 70,000 units were completed and transferred to the finishing department, and the following costs were added to production:
Direct materials .........$267,880
Direct labor ............253,000
Overhead applied ..........117,600
Required:
Prepare a production report for the assembly department for June using the FIFO method of costing. The report should disclose the physical flow of units, equivalent units, and unit costs and should track the disposition of manufacturing costs.
Paraffin .............$120,000
Pigment ...............100,000
The costs of the materials added during the month are also given:
Paraffin ..............$3,060,000
Pigment ..............2,550,000
Prepare an equivalent unit schedule with cost categories for each material. Calculate the cost per unit for each type of material.