Explore BrainMass

Explore BrainMass

    Equivalent units and cost

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Ricko Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.

    Work in process, beginning:
    Units in process 900
    Stage of completion with respect to materials 80%
    Stage of completion with respect to conversion 90%
    Costs in the beginning inventory:
    Materials cost $1,008
    Conversion cost $27,621
    Units started into production during the month 19,000
    Units completed and transferred out 19,700
    Costs added to production during the month:
    Materials cost $22,992
    Conversion cost $650,504
    Work in process, ending:
    Units in process 200
    Stage of completion with respect to materials 90%
    Stage of completion with respect to conversion 10%

    a. What are the equivalent units for materials for the month in the first processing department?

    b. What are the equivalent units for conversion costs for the month in the first processing department?

    c. The cost per equivalent unit for materials for the month in the first processing department is:

    d. The cost per equivalent unit for conversion costs for the first department for the month is:

    e. The cost per equivalent whole unit for the month in the first processing department is:

    f. The total cost transferred from the first processing department to the next processing department during the month is:

    g. The cost of ending work in process inventory in the first processing department according to the company's cost system is:

    © BrainMass Inc. brainmass.com March 4, 2021, 8:33 pm ad1c9bdddf
    https://brainmass.com/business/fifo/equivalent-units-and-cost-176536

    Attachments

    Solution Preview

    Please see the attached files.

    Ricko Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.

    Work in process, beginning:
    Units in process 900
    Stage of completion with respect to materials 80%
    Stage of completion with respect to conversion 90%
    Costs in the beginning inventory:
    Materials cost $1,008
    Conversion cost $27,621
    Units started ...

    Solution Summary

    The solution explains how to calculate the equivalent units, cost and the cost of units transferred and in ending inventory

    $2.49

    ADVERTISEMENT