Jarvene Corporation uses the FIFO method in its process costing system. The following data are for the most recent month of operations in one of the company's processing departments: Units in beginning inventory Units started into production Units in ending inventory Units transferred to the next department Percentage completion of beginning inventory Percentage completion of ending inventory Materials $18.00 440 4,320 310 4,450 Materials 70% 80% The cost of beginning inventory according to the company's costing system was $7,827 of which $4,822 was for materials and th remainder was for conversion cost. The costs added during the month amounted to $181,186. The costs per equivalent unit for the month were: Conversion $23.00 Conversion 30% 40% Cost per equivalent unit Required: 1. Compute the total cost per equivalent unit for the month. 2. Compute the equivalent units of material and conversion in the ending Inventory. 3. Compute the equivalent units of material and conversion that were required to complete the beginning inventory.

Jarvene Corporation uses the FIFO method in its process costing system. The following data are for the most recent month of operations in one of the company's processing departments: Units in beginning inventory Units started into production Units in ending inventory Units transferred to the next department Percentage completion of beginning inventory Percentage completion of ending inventory Materials $18.00 440 4,320 310 4,450 Materials 70% 80% The cost of beginning inventory according to the company's costing system was $7,827 of which $4,822 was for materials and th remainder was for conversion cost. The costs added during the month amounted to $181,186. The costs per equivalent unit for the month were: Conversion $23.00 Conversion 30% 40% Cost per equivalent unit Required: 1. Compute the total cost per equivalent unit for the month. 2. Compute the equivalent units of material and conversion in the ending Inventory. 3. Compute the equivalent units of material and conversion that were required to complete the beginning inventory.

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Description: Jarvene Corporation uses the FIFO method in its process costing system. The following data are for the most recent month ofoperations in one of the company's processing departments:Units in beginning inventoryUnits started into productionUnits in en

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 15E: Costs per equivalent unit and production costs Based on the data in Exercise 17-14, determine the...

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Concept explainers

Process Costing

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure. 

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.

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Question

Jarvene Corporation uses the FIFO method in its process costing system. The following data are for the most recent month of
operations in one of the company's processing departments:
Units in beginning inventory
Units started into production
Units in ending inventory
Units transferred to the next department
Percentage completion of beginning inventory
Percentage completion of ending inventory
The cost of beginning inventory according to the company's costing system was $7,827 of which $4,822 was for materials and the
remainder was for conversion cost. The costs added during the month amounted to $181,186. The costs per equivalent unit for the
month were:
Work in process, October 1
Work in process, October 31
Materials Conversion
$18.00
$23.00
Materials
70%
80%
Cost per equivalent unit
Required:
1. Compute the total cost per equivalent unit for the month.
2. Compute the equivalent units of material and conversion in the ending Inventory.
3. Compute the equivalent units of material and conversion that were required to complete the beginning Inventory.
4. Compute the number of units started and completed during the month.
5. Compute the cost of ending work in process inventory for materials, conversion, and in total for the month.
6. Compute the cost of the units transferred to the next department for materials, conversion, and in total for the month.
Equivalent units of production
440
4,320
310
4,450
Clonex Labs, Incorporated, uses the FIFO method in its process costing system. The following data are available for one department
for October:
Units
31,000
16,000
Conversion
30%
40%
Materials
65%
81%
Materials Conversion
Percent Completed
The department started 173,000 units into production during the month and transferred 188,000 completed units to the next
department.
Required:
Compute the equivalent units of production for materials and conversion for October.
Conversion
33%
39%

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