PR 16-6A

• FIFO: Cost per equivalent unit; Costs assigned to products

QualCo manufactures a single product in two departments: Cutting and Assembly. Information for the Cutting department for May follows.

	Units	Direct Materials	Conversion
		Percent Complete	Percent Complete
Beginning work in process inventory	37,500	60%	40%
units started and completed	150,000
units completed and transferred out	187,500
Ending work in process inventory	51,250	60%	20%
Beginning work in process
direct materials	$74,250.00
conversion	$28,500.00
		$102,750.00
Costs added this period
Direct materials	$505,035.00
Conversion	$398,395.00
		$903,430.00
Total Costs to account for		$1,006,180.00

1. Compute equivalent units of production for both direct materials and conversion.

2. Compute cost per equivalent unit of production for both direct materials and conversion.

3. Assign costs to the departments outputspecifically, to the units transferred out and to the units that remain in work in process at period-end.

Check (1) EUP for materials, 195,750