Development Limited uses the FIFO (first in, first out) method in its process costing system The following data summarizes the operations of the companys first processing department for August Work in process 1 st August Units in process 850 units Percent complete with respect to materials 80 Percent complete with respect to conversion 20 Costs in the beginning inventory Materials cost $7,000 Conversion cost $3,800 Units started into production 11,000 units Units completed transferred out in August 11,100 units Costs added to production during August Materials cost $150,000 Conversion cost $195,000 Work in process 31 st August Units in process 750 units Percent complete with respect to materials 90 Percent complete with respect to conversion 50 a Calculate the equivalent units of production for August b,Calculate the costs per equivalent unit C Determine the total cost of the units transferred to the next department

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Question: Development Limited uses the FIFO (first in, first out) method in its process costing system. The following data summarizes the operations of the companys first

Development Limited uses the FIFO (first in, first out) method in its process costing system. The following data summarizes the operations of the companys first processing department for August.

Work in process 1^st August:
Units in process	850 units
Percent complete with respect to materials	80%
Percent complete with respect to conversion	20%
Costs in the beginning inventory:
Materials cost	$7,000
Conversion cost	$3,800
Units started into production	11,000 units
Units completed & transferred out in August	11,100 units
Costs added to production during August
Materials cost	$150,000
Conversion cost	$195,000
Work in process 31^st August
Units in process	750 units
Percent complete with respect to materials	90%
Percent complete with respect to conversion...................................	50%

a. Calculate the equivalent units of production for August

b,Calculate the costs per equivalent unit.

C. Determine the total cost of the units transferred to the next department.

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