Question

LiPari Company uses the FIFO method of process costing to account for the costs of its product. There are two processes, Department 1 and Department 2. Processing starts in Department 1 and moves from there to Department 2, at which point the product is complete. All materials are added at the beginning of both departments.

In Department 1, there was beginning work in process of 3,000 units, 40% complete with respect to conversion. 4,000 units of were in ending work in process, which was 60% complete.

Department 1 added $172,500 in materials and $224,900 of conversion during the period. The beginning work in process of Department 1 totaled $13,800, $10,000 of which were conversion costs.

The production report for Department 2 showed 68,000 transferred-in units for the period.

Unless otherwise noted, all questions below refer to department 1. Compute the following:

1) The total number of units to account for as shown on the production report:

2) The total costs to account for on the production report:

3) The number of physical units completed during the period in Department 1.

4) Equivalent units of materials.

5) The equivalent unit cost of materials.

6) The equivalent units of conversion.

7) The transferred-in costs for Department 2 for the period is:

8) The amount of conversion cost included in the ending work in process (Department 1).

Answer 1