Question: Calculating EUP using the first-in, first-out (FIFO) method requires the determination of units completed and the percentage of completion of beginning work-in-process and ending work-in-process

Calculating EUP using the first-in, first-out (FIFO) method requires the determination of units completed and the percentage of completion of beginning work-in-process and ending work-in-process regarding each cost category. The total EUP for direct materials, direct labor, and manufacturing overhead were, respectively, 2,160,000; 1,860,000; and 1,860,000. Determining the total unit cost of production requires calculating total cost and unit cost for each cost category. The total cost per EUP is $4.35. The cost of ending finished goods is a function of beginning inventories, production volume, sales, spoilage, and manufacturing costs. It equals $0. The cost of ending work-in-process also is a function of beginning inventories, production volume, sales, spoilage, and manufacturing costs. It equals $3,405,000. The auditor assigned to perform the inventory cost analysis has compared the results with the auditee's accounting records. The auditor has concluded that the appropriate adjusting journal entry is no entry

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