Answer:
Forming department
<u>Process cost summary for May using the FIFO method</u>
units $
INPUTS
Beginning WIP 3,500 $264,740
Started 23,850 $2,912,740
Total 27,350 $3,177,480
OUTPUTS
Transferred to Assembly 24,700 $1,312,805
Ending WIP 2,650 $126,813
Total 27,350 $1,439,618
Explanation:
<u>Equivalent units of production</u>
Materials = 3,500 x 0% + 21,200 x 100% + 2,650 x 100% = 23,850
Conversion Cost = 3,500 x 20% + 21,200 x 100% + 2,650 x 80% = 24,020
<u>Cost per equivalent units of production</u>
Materials = $636,100 ÷ 23,850 = $26.67
Conversion Cost = $636,100 ÷ 24,020 = $26.48
Total = $26.67 + $26.48 = $53,15
<u>Cost allocated to units transferred and to those still in process</u>
Transferred to Assembly = 24,700 x $53,15 = $1,312,805
Ending WIP = 2,650 x $26.67 + 2,120 x $26.48 = $126,813
