Beginning work-in-process inventory Materials cost Conversion cost Total Current costs Materials cost Conversion cost Total $ 56,000 35,400 $ 91,400 $ 124,000 372,600 $ 496,600 Materials are added at the beginning of the process. The following quantities have been recorded: • Beginning inventory, 40,000 partially complete gallons, 25 percent complete with respect to conversion costs. • Units started in July, 80,000 gallons. • Units transferred out in July, 90,000 gallons. • Ending inventory, 30,000 gallons, 40 percent complete with respect to conversion costs. Required: Compute the cost per equivalent unit for direct materials and for conversion costs for July using the FIFO method. Note: Round your answers to 2 decimal places.
Beginning work-in-process inventory Materials cost Conversion cost Total Current costs Materials cost Conversion cost Total $ 56,000 35,400 $ 91,400 $ 124,000 372,600 $ 496,600 Materials are added at the beginning of the process. The following quantities have been recorded: • Beginning inventory, 40,000 partially complete gallons, 25 percent complete with respect to conversion costs. • Units started in July, 80,000 gallons. • Units transferred out in July, 90,000 gallons. • Ending inventory, 30,000 gallons, 40 percent complete with respect to conversion costs. Required: Compute the cost per equivalent unit for direct materials and for conversion costs for July using the FIFO method. Note: Round your answers to 2 decimal places.
Chapter5: Process Costing
Section: Chapter Questions
Problem 1EB: Given the following information, determine the equivalent units of ending work in process for...
Related questions
Question
![Beginning work-in-process inventory
Materials cost
Conversion cost
Total
•
Current costs
Materials cost
Conversion cost
Total
Materials are added at the beginning of the process. The following quantities have been recorded:
• Beginning inventory, 40,000 partially complete gallons, 25 percent complete with respect to conversion costs.
• Units started in July, 80,000 gallons.
Units transferred out in July, 90,000 gallons.
• Ending inventory, 30,000 gallons, 40 percent complete with respect to conversion costs.
$ 56,000
35,400
$ 91,400
Direct Materials
Conversion Costs
$ 124,000
372,600
$496,600
Required:
Compute the cost per equivalent unit for direct materials and for conversion costs for July using the FIFO method.
Note: Round your answers to 2 decimal places.
Cost per
Equivalent
Unit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff00761e5-6ea2-4b64-9c87-d0591240e351%2F0298907d-e93a-4d43-b7c4-c1c79b2d8217%2F50bz4gtq_processed.png&w=3840&q=75)
Transcribed Image Text:Beginning work-in-process inventory
Materials cost
Conversion cost
Total
•
Current costs
Materials cost
Conversion cost
Total
Materials are added at the beginning of the process. The following quantities have been recorded:
• Beginning inventory, 40,000 partially complete gallons, 25 percent complete with respect to conversion costs.
• Units started in July, 80,000 gallons.
Units transferred out in July, 90,000 gallons.
• Ending inventory, 30,000 gallons, 40 percent complete with respect to conversion costs.
$ 56,000
35,400
$ 91,400
Direct Materials
Conversion Costs
$ 124,000
372,600
$496,600
Required:
Compute the cost per equivalent unit for direct materials and for conversion costs for July using the FIFO method.
Note: Round your answers to 2 decimal places.
Cost per
Equivalent
Unit
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
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.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning