(APPENDIX) FIRST-IN, FIRST-OUT METHOD; UNIT COST;

VALUING INVENTORIES Loren Inc. manufactures products that pass through two or more processes. During April, equivalent units were computed using the FIFO method:

Units started and completed 4,600 Units in BWIP 3 Fraction to complete (60 percent) 840 Units in EWIP 3 Fraction complete (4,000 3 60 percent) 2,400 Equivalent units of output (FIFO) 7,840 April’s costs to account for are as follows:

BWIP (40 percent complete) $ 1,120 Materials 10,000 Conversion cost 4,000 Total $15,120 Required:

. Calculate the unit cost for April using the FIFO method. Round to two decimal places.

. Using the FIFO method, determine the cost of EWIP and the cost of the goods transferred out.

Problems Problem