Parker Corporation makes candy bars. One of its processing departments reported the following information for August. Beginning work in process costs included $50,000 in direct materials and $110,000 in conversion cost. A total of $144,000 of direct materials costs and $210,000 in conversion cost was incurred during the month. Equivalent units totaled 12,000 for direct materials and 8,000 for conversion cost. Using the first-in, first-out (FIFO) method, Parker's cost per equivalent unit for conversion during August would be:
We discuss how to calculate the number of equivalent units and the
equivalent cost per unit, and to reconcile the total cost of Work in
Process Inventory using the first-in, first-out (FIFO) method. You also
understood how to prepare the
using the first-in, first-out (FIFO) method.
Knowledge Check 02
Parker Corporation makes candy bars. One of its processing departments
reported the following information for August. Beginning work in process costs
included $50,000 in direct materials and $110,000 in conversion cost. A total of
$144,000 of direct materials costs and $210,000 in conversion cost was
incurred during the month. Equivalent units totaled 12,000 for direct materials
and 8,000 for conversion cost. Using the first-in, first-out (FIFO) method,
Parker's cost per equivalent unit for conversion during August would be:
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