Question

Kimbeth Manufacturing uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November.

	Units
Work in process, November 1st	17,600
Started in production during November	110,000
Work in process, November 30th	26,400

The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs. The ending inventory was 90% complete as to materials and 40% complete as to conversion costs.
Costs pertaining to November are as follows:
Beginning inventory: direct materials, 46,050; direct labor, $17,220; manufacturing overhead, $13,010.
Costs incurred during the month: direct materials, $400,400; direct labor, $156,160; manufacturing overhead, $332,330.

   

What is the equivalent unit cost for the conversion costs assuming Kimbeth uses first-in, first-out (FIFO) process costing? (Round your final answer to 2 decimal places.)

Answer 1

FIFO method
Beggining units	17600	Transferred out	1,01,200
Started into production	110000	Ending units	26,400
	127600		127600
Equivalent units	Material	Conversion
Beginning units	17600	17600
Completion in current period	40%	80%
A	7040	14080
Units started and completed	83600	83600
Completion	100%	100%
B	83600	83600
Ending Units	26,400	26,400
Completion	90%	40%
C	23760	10560
Total units A+B+C	114400	108240
Cost per equivalent units
Per unit cost	Cost	Total units	Per unit cost
Material cost	400400	114400	3.50
Conversion cost	488490	108240	4.51
Total	888890		8.01