Question

During? September, the Filtering Department of Downtown? Center, Inc. had a beginning

Workminus?inminus?Process

Inventory of

400400

units with costs of

$ 77 comma 000$77,000.

During the?month,

700700

units were transferred in from the Milling Department with costs of

$ 219 comma 000$219,000.

It had

400400

units in ending

Workminus?inminus?Process

Inventory. What is the cost per equivalent unit of production for the transferred in units that were transferred to the Filtering Department in September under the

firstminus??in,

firstminus?out

?(FIFO) method??(Round your answer to the nearest? cent.)

A.

$ 81.25$81.25

per equivalent unit of production for transferred in

B.

$ 70.00$70.00

per equivalent unit of production for transferred in

C.

$ 1.00$1.00

per equivalent unit of production for transferred in

D.

$ 312.86$312.86

per equivalent unit of production for transferred in

Answer 1

Answer is $ 312.86 per equivalent unit

Explanation:

UNITS TO ACCOUNT FOR:
Beginning Work in Process units				400
Add: Units Started in Process				700
Total Units to account for:				1,100
UNITS TO BE ACCOUNTED FOR:
Units completed from Beginning WIP				400
Units started and completed				300
Ending Work in Process				400
Total Units to be accounted for:				1,100
Equivalent Units:
			Transferred in cost
			% Completion	Units
Units completed from Beg. WIP			0%	0
Units started and completed			100%	300
Ending Work in Process			100%	400
Total Equivalent units				700
COST PER EQUIVALENT UNIT:
			Transferred in cost
Total cost added during the year			219,000
Equivalent Units			700
Cost per Equivalent unit			312.86