Question: Daosta Incorporated uses the FIFO method in its process costing system. The following data concern the operations of the companys first processing department for a

Daosta Incorporated uses the FIFO method in its process costing system. The following data concern the operations of the companys first processing department for a recent month.

Work in process, beginning:
Units in process 600
Percent complete with respect to materials 40%
Percent complete with respect to conversion 20%
Costs in the beginning inventory:
Materials cost $ 620
Conversion cost $ 2,162
Units started into production during the month 18,000
Units completed and transferred out 18,200
Costs added to production during the month:
Materials cost $ 55,388
Conversion cost $ 500,872
Work in process, ending:
Units in process 400
Percent complete with respect to materials 50%
Percent complete with respect to conversion 50%

Required:

Using the FIFO method:

a. Determine the equivalent units of production for materials and conversion costs.

b. Determine the cost per equivalent unit for materials and conversion costs.

c. Determine the cost of ending work in process inventory.

d. Determine the cost of units transferred out of the department during the month.

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