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    FIFO method

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    Mullins Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

    Beginning work in process inventory:
    Units in beginning work in process inventory 700
    Materials costs 11,500
    Conversion costs 22,200
    Percentage complete with respect to materials 75%
    Percentage complete with respect to conversion 65%
    Units started into production during the month 8,600
    Units transferred to the next department during the month 7,800
    Materials costs added during the month 159,300
    Conversion costs added during the month 348,500
    Ending work in process inventory:
    Units in ending work in process inventory 1,500
    Percentage complete with respect to materials 65%
    Percentage complete with respect to conversion 50%

    Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
    Reference: 4-17

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

    9,300
    7,100
    8,095
    750

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    https://brainmass.com/business/fifo/fifo-method-66937

    Solution Preview

    Under FIFO method, the material transferred will first comprize of units ...

    Solution Summary

    FIFO method is applied.

    $2.19

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