Question 1

Unit Cost and Cost Assignment, Nonuniform Inputs

Loran Inc. had the following equivalent units schedule and cost for its fabrication department during September:

	Materials		Conversion
Units completed	180,000		180,000
Add: Units in ending WIP x Fraction complete	66,000		33,000
(66,000 x 50%)
Equivalent units of output	246,000		213,000
Costs:
Work in process, September 1:
Materials	$147,000
Conversion costs	7,875
Total	$154,875
Current costs:
Materials	$1,131,000
Conversion costs	393,185
Total	$1,524,185

Required:

1. Calculate the unit cost for materials, for conversion, and in total for the fabrication department for September. If required, round your answers to the nearest cent.

Unit materials cost	$
Unit conversion cost	$
Total unit cost	$

2. Calculate the cost of units transferred out and the cost of EWIP. Round unit cost value to the nearest cent in intermediate calculations. If required, round final answers to the nearest dollar.

Cost transferred out	$
Cost of ending work in process	$

Question 2

First-In, First-Out Method; Equivalent Units

Lawson Company produces a product where all manufacturing inputs are applied uniformly. Lawson produced the following physical flow schedule for March:

Units to account for:
Units in BWIP (40% complete)	15,000
Units started	40,000
Total units to account for	55,000
Units accounted for:
Units completed:
From BWIP	15,000
Started and completed	34,000
	49,000
Units, EWIP (75% complete)	6,000
Total units accounted for	55,000

Prepare a schedule of equivalent units using the FIFO method.

Lawson Company
Schedule of equivalent units
(FIFO method)
Units started and completed
Units in BWIP x fraction to be completed:
Units in EWIP x fraction complete:
Equivalent units of output

Question 3

First-In, First-Out Method; Unit Cost; Valuing Inventories

Loren Inc. manufactures products that pass through two or more processes. During April, equivalent units were computed using the FIFO method:

Units started and completed		4,600
Units in BWIP X Fraction to Complete (60%)		840
Units in EWIP X Fraction Complete (4,000 X 60%)		2,400
Equivalent units of output (FIFO)		7,840
Aprils costs to account for are as follows:
BWIP (40% complete)		$1,120
Materials		10,000
Conversion cost		4,000
	Total	$15,120

Required:

1. Calculate the unit cost for April using the FIFO method. Round your answer to the nearest cent. $per unit

2. Using the FIFO method, determine the cost of EWIP and the cost of the goods transferred out.

Cost of ending work in process	$
Cost of goods transferred out	$