alculate Equivalent Units, Unit Costs, and Transferred Costs—FIFO Method Godfrey Manufacturing, Inc., operates a plant that produces its own regionally marketed Spicy Steak Sauce. The sauce is produced in two processes, blending and bottling. In the Blending Department, all materials are added at the start of the process, and labor and overhead are incurred evenly throughout the process. Godfrey uses the FIFO method. The following data from the Work in Process—Blending Department account for January 2016 is missing a few items: Work in Process - Blending Department January 1 inventory (5,000 gallons, 60% processed) $53,700 Transferred to Bottling Department (60,000 gallons)   January charges: Direct material (61,000 gallons) 457,500 Direct labor 428,400 Manufacturing overhead 183,600 January 31 inventory ( _______ gallons, 70% processed)     Assuming Godfrey uses the FIFO method in process costing, calculate the following amounts for the Blending Department: a. Number of units in the January 31 inventory. b. Equivalent units for materials and conversion costs. c. January cost per equivalent unit for materials and conversion costs. d. Cost of the units transferred to the Bottling Department. e. Cost of the incomplete units in the January 31 inventory Round average cost per equivalent unit to two decimal places, if applicable. Round other answers to the nearest whole number, when appropriate. Godfrey Manufacturing, Inc. Blending Department Flow of Units and Equivalent Units Calculation, January 2016   Equivalent Units   % in Direct % in Conversion     January Materials January Costs   Complete/Transferred Beginning Inventory             Started and completed             Ending inventory             Total       b.   b. Product Cost Report   Direct   Conversion     Materials   Costs   Beginning Inventory           Current           Total Costs to Account For           ÷ Total Equivalent Units     c.   c. Average cost / Equivalent unit (round two two decimal places)           Beginning inventory Costs incurred in Dec.     Costs incurred in Jan.     Started and finished     Cost of goods manufactured   d.   Ending inventory: Direct Materials     Conversion costs     Cost of Ending Inventory   e.   Total Costs Allocated     Save AnswersFinish attempt ...

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Calculate Equivalent Units, Unit Costs, and Transferred Costs—FIFO Method
Godfrey Manufacturing, Inc., operates a plant that produces its own regionally marketed Spicy Steak Sauce. The sauce is produced in two processes, blending and bottling. In the Blending Department, all materials are added at the start of the process, and labor and overhead are incurred evenly throughout the process. Godfrey uses the FIFO method. The following data from the Work in Process—Blending Department account for January 2016 is missing a few items:

Work in Process - Blending Department
January 1 inventory (5,000 gallons, 60% processed) $53,700
Transferred to Bottling Department (60,000 gallons)  
January charges:
Direct material (61,000 gallons) 457,500
Direct labor 428,400
Manufacturing overhead 183,600
January 31 inventory ( _______ gallons, 70% processed)  

 

Assuming Godfrey uses the FIFO method in process costing, calculate the following amounts for the Blending Department:
a. Number of units in the January 31 inventory.
b. Equivalent units for materials and conversion costs.
c. January cost per equivalent unit for materials and conversion costs.
d. Cost of the units transferred to the Bottling Department.
e. Cost of the incomplete units in the January 31 inventory


Round average cost per equivalent unit to two decimal places, if applicable. Round other answers to the nearest whole number, when appropriate.

Godfrey Manufacturing, Inc. Blending Department
Flow of Units and Equivalent Units Calculation, January 2016
  Equivalent Units
  % in Direct % in Conversion  
  January Materials January Costs  
Complete/Transferred
Beginning Inventory            
Started and completed            
Ending inventory            
Total       b.   b.


Product Cost Report
  Direct   Conversion  
  Materials   Costs  
Beginning Inventory          
Current          
Total Costs to Account For          
÷ Total Equivalent Units     c.   c.
Average cost / Equivalent unit (round two two decimal places)          
Beginning inventory
Costs incurred in Dec.    
Costs incurred in Jan.    
Started and finished    
Cost of goods manufactured   d.  
Ending inventory:
Direct Materials    
Conversion costs    
Cost of Ending Inventory   e.  
Total Costs Allocated    
Save AnswersFinish attempt ...
 
 

 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Decision to Sell before or after additional processing
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education