Beginning inventory consisted of 5,000 units (100% referred as to material, 55% referred as to labor and overhead) with a cost of $124,800 materials and $104,500 conversion. 

58,000 units were started into production during the month with material costs of $1,537,000 and $2,124,375 of conversion costs.

The ending inventory of 6,000 chairs was 100% referred as to materials and 40% complete as to labor and overhead.

A. Using weighted average costing (use 4 decimal places in your calculations):

1. Compute the equivalent units of production for each input.

2. Compute the cost per unit.

3. Compute the cost transferred out to finished goods.

4. Compute the ending work in process inventory balance.

B. Using FIFO costing (use 2 decimal places in your calculations):

a. Compute the equivalent units of production for each input.

b. Compute the cost per unit.

c. Compute the cost transferred out to finished goods.

d. Compute the ending work in process inventory balance.

Answer rating: 100% (QA)

A Using weighted average costing 1 To compute the equivalent units of production for each input we need to consider the units completed and transferred out as well as the units in ending work in proce... View the full answer