During April, the first production department of a process manufacturing system completed its work on 340,000 units of a product and transferred them to the next department.
During April, the first production department of a process manufacturing
system completed its work on 340,000 units of a product and transferred them to the next department. Of these transferred units, 68,000 were in process in the production department at the beginning of April and 272,000 were started and completed in April. April’s beginning inventory units were 75% complete with respect to materials and 25% complete with respect to conversion. At the end of April, 90,000 additional units were in process in the production department and were 90% complete with respect to materials and 40% complete with respect to conversion.
The production department had $1,006,400 of direct materials and $728,770 of conversion costs charged to it during April. Also, its beginning inventory of $174,580 consists of $151,350 of direct materials cost and $23,230 of conversion costs.
1. Compute the direct materials cost per equivalent unit for April. (Round “Cost per EUP” to 2 decimal places.)
2. Compute the conversion cost per equivalent unit for April. (Round “Cost per EUP” to 2 decimal places.)
3. Using the FIFO method, assign April’s costs to the department’s output—specifically, its units transferred to the next department and its ending work in process inventory. (Round “Cost per EUP” to 2 decimal places.)
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