Chapter 20, Problem 5PSB

Problem 20-5B^A FIFO: Process cost summary; equivalent units; cost estimates C3 C4 P4

Refer to the information in Problem 20-4B. Assume that Switch uses the FIFO method to account for its process costing system. The following additional information is available for the Cutting department.
• Beginning work in process consists of 10.000 units that were 75% complete with respect to direct materials and 60% complete with respect to conversion.
* Of the 220,000 units transferred out, 10,000 were from beginning work in process: me remaining 210,000 were units started and completed during January.

Required

1. Prepare the Cutting department's process cost summary for January using FIFO. Round cost per EUP to three decimal places.
Check (1: Conversion EUP, 226.000
2. Prepare the journal entry dated January 31 to transfer the cost of units to Assembly. [2) Cost transferred out. 1743,554