Required: a. Compute the equivalent units for the materials and conversion cost calculations. b. Compute the cost per equivalent unit for direct materials and for conversion costs using the FIFO method.
Required information
Exercise 8-35 & 8-36 (Algo) (LO 8-5)
[The following information applies to the questions displayed below.]
The Matsui Lubricants plant uses the FIFO method to account for its work-in-process inventories. The accounting records show the following information for a particular day.
| Beginning WIP inventory | |||
| Direct materials | $ | 991 | |
| Conversion costs | 332 | ||
| Current period costs | |||
| Direct materials | 13,580 | ||
| Conversion costs | 8,844 | ||
Quantity information is obtained from the manufacturing records and includes the following.
| Beginning inventory | 650 | units | (60% complete as to materials, 50% complete as to conversion) |
| Current period units started | 4,400 | units | |
| Ending inventory | 1,300 | units | (40% complete as to materials, 20% complete as to conversion) |
Exercise 8-35 (Algo) Compute Costs per Equivalent Unit: FIFO Method (LO 8-5)
Required:
a. Compute the equivalent units for the materials and conversion cost calculations.
b. Compute the cost per equivalent unit for direct materials and for conversion costs using the FIFO method.
Required information
Exercise 8-35 & 8-36 (Algo) (LO 8-5)
[The following information applies to the questions displayed below.]
The Matsui Lubricants plant uses the FIFO method to account for its work-in-process inventories. The accounting records show the following information for a particular day.
| Beginning WIP inventory | |||
| Direct materials | $ | 991 | |
| Conversion costs | 332 | ||
| Current period costs | |||
| Direct materials | 13,580 | ||
| Conversion costs | 8,844 | ||
Quantity information is obtained from the manufacturing records and includes the following.
| Beginning inventory | 650 | units | (60% complete as to materials, 50% complete as to conversion) |
| Current period units started | 4,400 | units | |
| Ending inventory | 1,300 | units | (40% complete as to materials, 20% complete as to conversion) |
Exercise 8-36 (Algo) Assign Costs to Goods Transferred Out and Ending Inventory: FIFO Method (LO 8-5)
Compute the cost of goods transferred out and the ending inventory using the FIFO method. (Do not round intermediate calculations.)
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