The mixing department of Cerise Ltd., a producer of fabric for Broadway Shows, has the following...

 

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The mixing department of Cerise Ltd., a producer of fabric for Broadway Shows, has the following information regarding costs and output for March: Units: Opening work-in-process inventory: 8 units Started and completed: 210,000 units Started and still in process at March 31: 70,000 units Direct materials: 100 % complete Conversion costs: 50% complete The company uses the FIFO method of process costing. Required: 1. Prepare a quantity schedule showing the computation of the equivalent units of production for March. The company is interested in learning if there will be a difference between the WACM and FIFO approaches for data for March. (Round cost per equivalent unit to 2 decimal places.) Beginning work in process Poduction activity in the period: Beginning work in process Started into production Started and completed Completed units Ending work in process Total volume processed Less EU from beginning of period Production volume in EU for the period Cost in work process, beginning Costs added in the period Total costs to account for EU produced in March Cost per EU Physical Units Transferred out in March Costs: Direct materials: $952,000 Direct labour: $59,000 Factory overhead: $553,500 0 2. Calculate the cost of 210,000 units transferred out in March. To account for Accounted for (EU = DOC*Physical units) DOC Direct Materials 0 WACM FIFO %6 96 %6 Equivalent Units Processed %6 S EU 0 0 0 Conversation Cost (EU = DOC*Physical units) DOC EU WACM FIFO 96 96 96 96 $ 0 0 0 The mixing department of Cerise Ltd., a producer of fabric for Broadway Shows, has the following information regarding costs and output for March: Units: Opening work-in-process inventory: 8 units Started and completed: 210,000 units Started and still in process at March 31: 70,000 units Direct materials: 100 % complete Conversion costs: 50% complete The company uses the FIFO method of process costing. Required: 1. Prepare a quantity schedule showing the computation of the equivalent units of production for March. The company is interested in learning if there will be a difference between the WACM and FIFO approaches for data for March. (Round cost per equivalent unit to 2 decimal places.) Beginning work in process Poduction activity in the period: Beginning work in process Started into production Started and completed Completed units Ending work in process Total volume processed Less EU from beginning of period Production volume in EU for the period Cost in work process, beginning Costs added in the period Total costs to account for EU produced in March Cost per EU Physical Units Transferred out in March Costs: Direct materials: $952,000 Direct labour: $59,000 Factory overhead: $553,500 0 2. Calculate the cost of 210,000 units transferred out in March. To account for Accounted for (EU = DOC*Physical units) DOC Direct Materials 0 WACM FIFO %6 96 %6 Equivalent Units Processed %6 S EU 0 0 0 Conversation Cost (EU = DOC*Physical units) DOC EU WACM FIFO 96 96 96 96 $ 0 0 0

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To compute the equivalent units of production for March using the FIFO method we need to calculate the equivalent units for both direct materials and conversion costs separately 1 Equivalent Units of ... View the full answer