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Inventory Cost Accounting Calculations

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Second, inc. Has the following information:

Beginning inventory : $ 62,400
Material costs for June : 133,700
Conversion costs for June : 197,000

Beginning inventory June 12,000 units (80 % complete for material and 60% for conversions costs.)

Started in June 40,000 units

Finished and transferred during June 46,000 units

Ending in inventory June 6,000 units (30 % complete for material, and 10 % complete for conversions costs.)

Required: using the FIFO method, find the following:

1. Total EPU's material
2. Total EPU's conversion costs
3. Unit cost material
4. Unit cost conversion costs
5. Total cost transferred out
6. Total cost ending inventory

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Solution Summary

This solution shows the answers and calculations of equivalent units of production and unit costs for both materials as well as the cost transferred out of the processing department in a two-paged word document attached.

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** Please see the attached file for the complete solution response **

For these types of problems, I usually start by setting up a T-account to keep track of the information given in the problem.

WIP (in units)
Beginning 12,000

Started 40,000
Transferred Out 46,000
Ending 6,000

FIFO Equivalent Units Calculations

FIFO includes current period costs only, so we must isolate exactly what pertains to the current period.

FIFO ...

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