Easy 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 950 Percent complete with respect to materials 90 Percent complete with respect to conversion 10 Costs in the beginning inventory Materials cost $ 1,838 Conversion cost $ 1,430 Units started into production during the month 23,700 Units completed and transferred out 23,800 Costs added to production during the month Materials cost $ 71,371 Conversion cost $ 542,998 Work in process, ending Units in process 850 Percent complete with respect to materials 70 Percent complete with respect to conversion 70 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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Question: Easy Incorporated uses the FIFO method in its process costing system. The following data concern the operations of the companys first processing department for a

Easy 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	950
Percent complete with respect to materials	90%
Percent complete with respect to conversion	10%
Costs in the beginning inventory:
Materials cost	$ 1,838
Conversion cost	$ 1,430
Units started into production during the month	23,700
Units completed and transferred out	23,800
Costs added to production during the month:
Materials cost	$ 71,371
Conversion cost	$ 542,998
Work in process, ending:
Units in process	850
Percent complete with respect to materials	70%
Percent complete with respect to conversion	70%

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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