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 380 Units started into production 4,280 Units in ending inventory 320 Units transferred to the next department 4,340 Materials Conversion Percentage completion of beginning inventory 60 % 40 % Percentage completion of ending inventory 90 % 40 % The cost of beginning inventory according to the company’s costing system was $7,869 of which $4,868 was for materials and the remainder was for conversion cost. The costs added during the month amounted to $178,468. The costs per equivalent unit for the month were: Materials Conversion Cost per equivalent unit $18.00 $23.00 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.

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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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	380
Units started into production	4,280
Units in ending inventory	320
Units transferred to the next department	4,340

	Materials	Conversion
Percentage completion of beginning inventory	60	%	40	%
Percentage completion of ending inventory	90	%	40	%

The cost of beginning inventory according to the company’s costing system was $7,869 of which $4,868 was for materials and the remainder was for conversion cost. The costs added during the month amounted to $178,468. The costs per equivalent unit for the month were:

	Materials	Conversion
Cost per equivalent unit	$18.00	$23.00

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.

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