Jane industries manufactures plastic toys. the company uses theFIFO processing costing system. During October,...

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Accounting

Jane industries manufactures plastic toys. the company uses theFIFO processing costing system. During October, Janes Fabricationdepartment started work on 10,000 models. During the month, thecompany completed 11,000 models, and transferred them to thedistribution department. The company ended the month with 1500models in ending inventory. There were 2500 models in beginninginventory. All direct materials costs are added at the beginning ofthe production cycle and conversion costs are added uniformlythroughout the production process.

Beginning work in process was 25% complete as to conversioncosts, while ending work in process was 50% complete as toconversion cost.

Beginning Inventory: Direct Materials costs 19,200. Conversioncosts 10,800

Manufacturing costs added during the accounting period: DirectMaterials Cost 70,000. Conversion costs 240,000.

The FIFO method of process costing is used. CALCULATE the totalequivalent units (please show the number of equivalent unitsstarted and completed currently) and the costs per equivalent unitsfor direct materials and conversion costs, respectively for themonth of october?

MaterialsConversion
Total Equivalent Units
Cost per Equivalent Unit

Reconcile and assign the costs for both materials and conversionfor only Started and Completed Currently

MaterialsConversion
Started and Completed Currently

Answer & Explanation Solved by verified expert
4.1 Ratings (663 Votes)

  • [1]

--Working

EUP - FIFO Method

Units

% Material

EUP Materials

% Conversion

EUP - Conversion

Units of ENDING WIP

                                   1,500

100.0%

                     1,500

50.0%

                                   750

Units STARTED & COMPLETED

                                   8,500

100%

                     8,500

100%

                                8,500

Units of beginning WIP

                                   2,500

0.00%

                            -  

75.00%

                                1,875

Equivalent Units of Production

                   10,000

                             11,125

COST per EUP

Material

Conversion

Cost incurred this period

$          70,000.00

$                  240,000.00

Total Costs

Costs

$          70,000.00

Costs

$                  240,000.00

Equivalent units of production

EUP

                   10,000

EUP

                             11,125

Cost per EUP

$             7.00000

$                        21.5730

--Requirement

Materials

Conversion

Total Equivalent Units

10,000

11,125

Cost per Equivalent Unit

$ 7.00

$ 21.57

  • [2]

--Working

Cost of Units started & completed this period:

EUP

Cost per EUP

Total Cost

- Direct Materials

                             8,500.00

                                 7.00

             59,500.00

- Conversion

                             8,500.00

                               21.57

           183,345.00

Total costs started & Completed this period

           242,845.00

--Requirement

Materials

Conversion

Started and Completed Currently

$ 59500

$ 183345



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Transcribed Image Text

In: AccountingJane industries manufactures plastic toys. the company uses theFIFO processing costing system. During October, Janes...Jane industries manufactures plastic toys. the company uses theFIFO processing costing system. During October, Janes Fabricationdepartment started work on 10,000 models. During the month, thecompany completed 11,000 models, and transferred them to thedistribution department. The company ended the month with 1500models in ending inventory. There were 2500 models in beginninginventory. All direct materials costs are added at the beginning ofthe production cycle and conversion costs are added uniformlythroughout the production process.Beginning work in process was 25% complete as to conversioncosts, while ending work in process was 50% complete as toconversion cost.Beginning Inventory: Direct Materials costs 19,200. Conversioncosts 10,800Manufacturing costs added during the accounting period: DirectMaterials Cost 70,000. Conversion costs 240,000.The FIFO method of process costing is used. CALCULATE the totalequivalent units (please show the number of equivalent unitsstarted and completed currently) and the costs per equivalent unitsfor direct materials and conversion costs, respectively for themonth of october?MaterialsConversionTotal Equivalent UnitsCost per Equivalent UnitReconcile and assign the costs for both materials and conversionfor only Started and Completed CurrentlyMaterialsConversionStarted and Completed Currently

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