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# Equivalent Cost of Production Units - FIFO, Weighted Average

Kimbeth Manufacturing uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November 2008. (Adapted from June 1995 CMA Exam.)

The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs. The ending inventory was 90% complete as to materials and 40% complete as to conversion costs.

Costs pertaining to November are as follows:
Beginning inventory: direct materials, \$54,560; direct labor, \$20,320; manufacturing overhead, \$15,240
Costs incurred during the month: direct materials, \$468,000; direct labor, \$182,880; manufacturing overhead, \$391,160

a).? What is the equivalent unit cost for materials assuming Kimbeth uses first-in, first-out (FIFO) process costing??

b).? What is the equivalent unit cost for the conversion costs, assuming Kimbeth uses first-in, first-out (FIFO) process costing??

c) What are the total costs in the ending Work-in-Process Inventory, assuming Kimbeth uses first-in, first-out (FIFO) process costing??

d)? What is the equivalent unit cost for materials, assuming Kimbeth uses weighted-average process costing??

e) What is the equivalent unit cost for the conversion costs, assuming Kimbeth uses weighted-average process costing??

#### Solution Summary

The solution computes Equivalent Cost of Production Units, Conversion cost using FIFO, weighted average cost,

\$2.19