PROCESS COSTING QUESTION

Barnett Company uses process costing system in its production. The material costs were

$80\%$ complete and $55\%$ conversion costs complete with respect to the $8,000$ units in work

in process at May $1.$ Additional $20,000$ units were started during the month of May.

During May, $18,000$ units were completed and transferred to the next department. The

material costs were $40\%$ complete and $70\%$ conversion costs complete with respect to the

ending work in process at May $31.$ An analysis of the costs relating to work in process $a{t}_{{?}_{?}}$

May $1$ and to production activity for May follows:

Required: Assuming Barnett Company uses FIFO process costing system

$($i$)$ Compute the equivalent units of production for materials and conversion costs, using FIFO

process costing system. $-60,840$

$($ii$)$ Compute the cost per unit for materials and conversion costs $$1\mathrm{.}36256$

$($iii$)$ Compute the cost of goods completed and transferred to the next department,

$($iv$)$ Compute the cost of work in process ending inventory.

Using the same data as you have in item $1,$ respond to the same four questions assuming the

company uses the weighted average cost method.