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Calculation of the FIFO equivalent units of production for the direct materials and the conversion...

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Accounting

  1. Calculation of the FIFO equivalent units of production for the direct materials and the conversion costs.
  2. Calculation of the FIFO costs per equivalent units of production for the direct materials and the conversion costs.
  3. Allocation of the direct materials costs and the conversion costs to the department output.


Ortega Restorative Oils Corp.
Formulation Department Basic Production Data




For the Month Ending March 31, 2023


Liters in Work In-Process at March 1350,000
% Complete as to Materials80%
% Complete as to Conversion Costs20%


Cost of Work In-Process at March 1:
Materials$ 2,240,000
Conversion Costs$ 322,000


Liters Entered into Production during March1,400,000


Costs Extended into Production during March:
Materials$ 10,481,100
Conversion Costs$ 7,808,500


Liters in Work In-Process at March 31280,000
% Complete as to Materials65%
% Complete as to Conversion Costs40%

Prepare a departmental cost report using the FIFO method for the Formulation Department for March 2023. The cost report must include three parts:


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