Richards Corporation uses the FIFO method of process costing.
The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 99,000 units, 75% complete as to materials and 20% complete as to conversion. Units started and completed: 269,000. Units completed and transferred out: 368,000. Ending Inventory: 39,500 units, 40% complete as to materials and 15% complete as to conversion. Costs: Costs in beginning Work in Process – Direct Materials: $37,200. Costs in beginning Work in Process – Conversion: $79,700. Costs incurred in October – Direct Materials: $646,800. Costs incurred in October – Conversion: $919,300. Calculate the equivalent units of conversion.
Multiple Choice
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413,425
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354,125
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324,400
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423,300
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269,000
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Following is a partial process cost summary for Mitchell Manufacturing’s Canning Department.
| Equivalent Units of Production | Direct Materials | Conversion | ||||||||
| Units Completed and transferred out | 72,000 | 72,000 | ||||||||
| Units in Ending Work in Process: | ||||||||||
| Direct Materials (12,000 * 100%) | 12,000 | |||||||||
| Conversion (12,000 * 60%) | 7,200 | |||||||||
| Equivalent Units of Production | 84,000 | 79,200 | ||||||||
| Cost per Equivalent Unit | ||||||||||
| Costs of beginning work in process | $ | 43,200 | $ | 63,400 | ||||||
| Costs incurred this period | 144,400 | 194,200 | ||||||||
| Total costs | $ | 187,600 | $ | 257,600 | ||||||
| Cost per equivalent unit | $ | 2.23 | per EUP | $ | 3.25 | per EUP | ||||
The total conversion costs transferred out of the Canning Department equals:
Multiple Choice
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$187,600.
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$257,400.
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$257,600.
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$194,200.
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$234,000.
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