Star Solar Panels accounts for production costs using the FIFO method of process costing. Direct materials are
Question:
Star Solar Panels accounts for production costs using the FIFO method of process costing. Direct materials are all added at the beginning of production and conversion costs are incurred uniformly during production. In September, Star Solar Panels had 7,700 units in beginning work-in-process that were 45 percent complete with respect to conversion costs. The company began production on another 38,400 units in September, and it had 13,200 units in ending work-in-process that were 60 percent complete with respect to conversion costs. Star Solar Panels reported the following production cost information for September: Direct Materials Conversion Costs Beginning WIP costs $ 48,700 $ 20,400 Costs added in the current period $ 967,000 $ 274,000 Required: a. WHat are the equivalent units of production for direct materials in September? b. What is September's cost per equivalent unit for conversion costs? c1. What are the total costs transferred out of production? c2. What is the total cost of ending work-in-process inventory?
Managerial Accounting Decision Making and Motivating Performance
ISBN: 978-0137024872
1st edition
Authors: Srikant M. Datar, Madhav V. Rajan