Requirements: • 1. Compute the equivalent units for materials and conversion costs. • 2. Compute the unit cost for materials and conversion costs. • 3. Compute the cost of goods transferred out. • 4. Compute the cost of the ending inventory.
Requirements: • 1. Compute the equivalent units for materials and conversion costs. • 2. Compute the unit cost for materials and conversion costs. • 3. Compute the cost of goods transferred out. • 4. Compute the cost of the ending inventory.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Problem 3. A company uses the FIFO method to account for its work in process inventories. The
accounting records show the following information:
* uIt 1011owing information:
Beginning work in process inventory
Materials
Conversion costs
Debits to work in process inventory this period:
P
360
180
Materials
Conversion costs
P 3,714
2,258
Units:
Beginning inventory
Percent of completion (materials, 60%, conversion cost, 30%)
Started this period
Ending inventory
Percent of completion:(materials, 40%, conversion cost, 20%)
300 units
2,000 units
600 units
Requirements:
1. Compute the equivalent units for materials and conversion costs.
2. Compute the unit cost for materials and conversion costs.
• 3. Compute the cost of goods transferred out.
4. Compute the cost of the ending inventory.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fabbae060-b652-4354-97e7-e71317bcae23%2Fa4d8c56a-12cf-47c9-8e58-7fb991970d57%2Ftvykmsl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 3. A company uses the FIFO method to account for its work in process inventories. The
accounting records show the following information:
* uIt 1011owing information:
Beginning work in process inventory
Materials
Conversion costs
Debits to work in process inventory this period:
P
360
180
Materials
Conversion costs
P 3,714
2,258
Units:
Beginning inventory
Percent of completion (materials, 60%, conversion cost, 30%)
Started this period
Ending inventory
Percent of completion:(materials, 40%, conversion cost, 20%)
300 units
2,000 units
600 units
Requirements:
1. Compute the equivalent units for materials and conversion costs.
2. Compute the unit cost for materials and conversion costs.
• 3. Compute the cost of goods transferred out.
4. Compute the cost of the ending inventory.
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