Question: The Assembly Department uses a process cost accounting system. The department adds materials and incurs conversion costs uniformly throughout the process. During May, $200,000 of
The Assembly Department uses a process cost accounting system. The department adds materials and incurs conversion costs uniformly throughout the process. During May, $200,000 of materials costs and $95,000 in conversion costs were charged to the department. The beginning Work in Process inventory was $63,000 on May 1, comprised of $40,000 of materials costs and $23,000 of conversion costs. The company employs the FIFO method of process costing.
Other data for the month of May are as follows: Beginning Work in Process inventory, 5/1 25,000 units (40% complete) Units completed and transferred out 50,000 units Ending Work in Process inventory, 5/31 30,000 units (30% complete)
Fill in the blanks below based on the information above:
A. How many physical units have to be accounted for in May? [80000] units
B. What are the equivalent units of production for materials for the month of May? [49000] EUP
C. What are the equivalent units of production for conversion costs for the month of May? [49000] EUP
D. What is the total cost assigned to one equivalent unit of production during the in May? $[6.02] rounded to the nearest $0.01.
E. Using the rounded result obtained in D above, what is the total cost assigned to the 50,000 units that were transferred out of the Assembly Department in May? $[303800] rounded to the nearest $1
F. What is the total cost of the May 31 inventory? $[54180] rounded to the nearest $1
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