OME DATA VIEW 1 x Cut Font Name - Font Size TabStop ? Wrap Text Insert Colu Copy B este i U Overline Merge Cell 3. Insert Row LICK HERE TO SAVE YOUR WORK A B D E F G 1 Process Costing - FIFO Method (16 marks) 2. 3 4 S&S Co. uses a FIFO process costing system to account for the costs of two departments. Department 2 receives units from Department 1 and applies conversion costs evenly throughout the process. In Department 2, direct materials are added when product is 40% complete. Inspection occurs when production is 100% complete. Normal spoilage is 3% of good units completed and transferred out. 5 6 At the beginning of December 2017, Department 2 has 1,060 units in WIP. These units were 50% complete, with $24,000 transferred-in cost, $15,900 direct material and $13,000 conversion costs. 7 8 During the month, 10,800 units were transferred into Department 2 at a cost of $262,419. Department 2 incurred material costs of $140,432 and conversion costs of $453,400 in December. 9 10 9,500 units were completed and transferred out. At the end of the month, there are 1,800 units in WIP. These units were 30% complete. 11 12 Required: 1 & 2 (read carefully what you are required to do - steps 1-4 only) 13 14 1. Calculate the equivalent units in Department 2 using the FIFO method including the physical unit reconciliation. (13 marks) 15 Question Answer New.. Paste 4. Copy B i EU U S Overline 8 Merge Cell CLICK HERE TO SAVE YOUR WORK G B C D E F 11 12 Required: 1 & 2 (read carefully what you are required to do - steps 1-4 only) 13 14 1. Calculate the equivalent units in Department 2 using the FIFO method including the physical unit reconciliation. (13 marks) 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 2. Calculate the cost per equivalent unit using the FIFO method. (3 marks) 30 31 32 33 34 35 36 37 End of question Question Answer New