Dengo Company makes a trail mix in two departments: Roasting and Blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company uses the FIFO method of process costing. October data for the Roasting department follow. UnitsDirect MaterialsConversionPercent CompletePercent CompleteBeginning work in process inventory4,600100%30%Units started and completed20,800 Units completed and transferred out25,400 Ending work in process inventory4,000100%70% Beginning work in process inventory $ 125,350Costs added this period Direct materials$ 324,880 Conversion1,351,7281,676,608Total costs to account for $ 1,801,9582. Compute cost per equivalent unit of production for both direct materials and conversion. Cost per equivalent unit of productionMaterialsConversion ÷ Equivalent units of production Cost per equivalent unit of production00

First, compute the equivalent units of production for direct materials and conversion costs. Using…

Answered: Dengo Company makes a trail mix in two…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Dengo Company makes a trail mix in two departments: Roasting and Blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company uses the FIFO method of process costing. October data for the Roasting department follow.

	Units	Direct Materials	Conversion
Percent Complete	Percent Complete
Beginning work in process inventory	4,600	100%	30%
Units started and completed	20,800
Units completed and transferred out	25,400
Ending work in process inventory	4,000	100%	70%

Beginning work in process inventory		$ 125,350
Costs added this period
Direct materials	$ 324,880
Conversion	1,351,728	1,676,608
Total costs to account for		$ 1,801,958