The following information is available from the Oils Division of Glasgow Corporation for December. Conversion costs for this division were 80 percent complete as to beginning work-in-process inventory and 50 percent complete as to ending work-in-process inventory. Information about conversion costs follows. Units Conversion Costs WIP at December 1 (80% complete) 20,000 $ 232,200 Units started and costs incurred during December 108,000 1,306,800 Units completed and transferred to next department during December 80,000 ? The Oils Division uses FIFO. Required: a-1. Compute the equivalent units for conversion costs. a-2. Compute the cost per equivalent unit for conversion costs. a-3. What was the conversion cost of work-in-process inventory in the Oils Division at December 31? b. What were the conversion costs per equivalent unit produced last period and this period, respectively?
The following information is available from the Oils Division of Glasgow Corporation for December. Conversion costs for this division were 80 percent complete as to beginning work-in-process inventory and 50 percent complete as to ending work-in-process inventory. Information about conversion costs follows. Units Conversion Costs WIP at December 1 (80% complete) 20,000 $ 232,200 Units started and costs incurred during December 108,000 1,306,800 Units completed and transferred to next department during December 80,000 ? The Oils Division uses FIFO. Required: a-1. Compute the equivalent units for conversion costs. a-2. Compute the cost per equivalent unit for conversion costs. a-3. What was the conversion cost of work-in-process inventory in the Oils Division at December 31? b. What were the conversion costs per equivalent unit produced last period and this period, respectively?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 8-52 (Static) FIFO Method (LO 8-5)
The following information is available from the Oils Division of Glasgow Corporation for December. Conversion costs for this division were 80 percent complete as to beginning work-in-process inventory and 50 percent complete as to ending work-in-process inventory. Information about conversion costs follows.
| Units | Conversion Costs | |||||
| WIP at December 1 (80% complete) | 20,000 | $ | 232,200 | |||
| Units started and costs incurred during December | 108,000 | 1,306,800 | ||||
| Units completed and transferred to next department during December | 80,000 | ? | ||||
The Oils Division uses FIFO.
Required:
a-1. Compute the equivalent units for conversion costs.
a-2. Compute the cost per equivalent unit for conversion costs.
a-3. What was the conversion cost of work-in-process inventory in the Oils Division at December 31?
b. What were the conversion costs per equivalent unit produced last period and this period, respectively?
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