Question

Pix Company has the following production data for March: no beginning work in process, units started and completed 30,500, and ending work in process 5,200 units that are 100% complete for materials and 40% complete for conversion costs. Pix uses the FIFO method to compute equivalent units. If unit materials cost is $4 and unit conversion cost is $12. The total costs to be assigned are $533,760, prepare the cost section of the production cost report for Pix Company using the FIFO approach.

Answer 1

Answer:

Summary of costs to be accounted for

Costs to be accounted for:            Materials         Conversion     Total

Beginning WIP                                   0                          0                  0

Costs incurred in the period         $142,800          $390,960     $533,760

Total costs to be accounted for   $142,800          $390,960     $533,760

 

Calculation of cost per equivalent unit

                                                       Materials         Conversion     Total

Total costs to be accounted for   $142,800          $390,960     $533,760

Total equivalent units                      35,700              32,580                        

Cost per equivalent unit                   $4                     $12              $16

Cost allocation

                                                       Materials         Conversion     Total

Units finished and transferred      $122,000        $366,000      $488,000

Ending WIP                                     $20,800          $24,960         $45,760  

Total costs to be accounted for    $142,800        $390,960      $533,760

Explanation:

beginning WIP 0 units

units started and completed 30,500

ending WIP 5,200

100% complete for materials

40% complete for conversion costs (2,080 EU)

total EU:

materials 35,700

conversion 32,580

total costs:

materials 35,700 x $4 = $142,800

conversion 32,580 x $12 = $390,960

total = $533,760