Problem 2. GANDA Inc. employs First-In-First-Out process costing system in accounting for its product. For the year ended, December 31, 2016, the following data are provided: a. The 30,000 work-in-process inventory on January 1, 2016 is 40% complete as regards to conversion cost while the 20,000 work-in-process inventory on December 31, 2016 is 90% incomplete as regards to conversion cost. b. The total units started during the year amounted to 60,000 units. There is no spoilage during the period. c. It is the company’s policy to apply direct labor and factory overhead uniformly throughout the period while ¾ of direct materials are added at the start of the process while the remaining direct materials are added at the end of the process. d. The cost of January 1, 2016 work-in-process inventory consists of 200,000-direct material, 300,000-direct labor and 500,000-factory overhead. e. The total manufacturing cost for the year consisted of P1M direct material, P3M-direct labor and P4M-factory overhead.  What is the cost per equivalent unit of production of Direct Material and Conversion Cost, respectively?  Assuming it's FIFO, What is the cost per equivalent unit of production of Direct Material and Conversion Cost, respectively?

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Problem 2. GANDA Inc. employs First-In-First-Out process costing system in accounting for its product. For the year ended, December 31, 2016, the following data are provided:
a. The 30,000 work-in-process inventory on January 1, 2016 is 40% complete as regards to conversion cost while the 20,000 work-in-process inventory on December 31, 2016 is 90% incomplete as regards to conversion cost.
b. The total units started during the year amounted to 60,000 units. There is no spoilage during the period.
c. It is the company’s policy to apply direct labor and factory overhead uniformly throughout the period while ¾ of direct materials are added at the start of the process while the remaining direct materials are added at the end of the process.
d. The cost of January 1, 2016 work-in-process inventory consists of 200,000-direct material, 300,000-direct labor and 500,000-factory overhead.
e. The total manufacturing cost for the year consisted of P1M direct material, P3M-direct labor and P4M-factory overhead. 

  1. What is the cost per equivalent unit of production of Direct Material and Conversion Cost, respectively? 
  2. Assuming it's FIFO, What is the cost per equivalent unit of production of Direct Material and Conversion Cost, respectively? 
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