Arboles Company manufactures pencils and has the following information available for the month of July: Work in process, July 1 (100% complete for materials, 60% for conversion) 74,100 units Direct materials $ 4,100 Conversion cost $ 16,600 Number of units started 99,100 units July costs Direct materials $ 5,600 Conversion cost $ 23,100 Work in process, July 31 (100% complete for materials, 10% for conversion) 69,100 units Required: Using the FIFO method of process costing, complete each of the following steps: 1. Reconcile the number of physical units worked on during the period. 2. Calculate the number of equivalent units. 3. Calculate cost per equivalent unit. 4. Reconcile the total cost of work in process.
Arboles Company manufactures pencils and has the following information available for the month of July: Work in process, July 1 (100% complete for materials, 60% for conversion) 74,100 units Direct materials $ 4,100 Conversion cost $ 16,600 Number of units started 99,100 units July costs Direct materials $ 5,600 Conversion cost $ 23,100 Work in process, July 31 (100% complete for materials, 10% for conversion) 69,100 units Required: Using the FIFO method of process costing, complete each of the following steps: 1. Reconcile the number of physical units worked on during the period. 2. Calculate the number of equivalent units. 3. Calculate cost per equivalent unit. 4. Reconcile the total cost of work in process.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Arboles Company manufactures pencils and has the following information available for the month of July:
| Work in process, July 1 | |||
| (100% complete for materials, 60% for conversion) | 74,100 | units | |
| Direct materials | $ | 4,100 | |
| Conversion cost | $ | 16,600 | |
| Number of units started | 99,100 | units | |
| July costs | |||
| Direct materials | $ | 5,600 | |
| Conversion cost | $ | 23,100 | |
| Work in process, July 31 | |||
| (100% complete for materials, 10% for conversion) | 69,100 | units | |
Required:
Using the FIFO method of
1. Reconcile the number of physical units worked on during the period.
2. Calculate the number of equivalent units.
3. Calculate cost per equivalent unit.
4. Reconcile the total cost of work in process.
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