Chapter Homework Problem

Baxter manufacturing assembles its products in one production department. Information for the

department for the month of June is as follows:

Beginning Inventory:

1,000 units, completed

Started and finished:

4,000 units

Ending inventory:

700 units, completed

Costs for the department were as follows:

Beginning inventory:

$17,800

Materials:

$75,200

Labor:

$25,500

Overhead:

$15,300

Inventory of finished goods at the beginning of the month was 1,800 units at a unit cost of $23.50 per

unit. The company sold and shipped 4,800 units during the month and uses a FIFO inventory flow. There

were 2,000 units left in the finished goods inventory at the end of the month.

Determine the following:

1.Equivalent units of production for the department.

2.The per unit processing cost

3.Cost of the units started last month and finished this month.

4.Cost of units started and finished this month.

5.Cost of ending inventory.

6.Cost of units complete and transferred to finished goods.

7.Cost of goods sold.

8.Finished goods inventor