Question

Wisqo Industries Ltd. (WIL) uses a first-in, first-out (FIFO) process costing system. In the month of April, 75,000 kilograms (kg) of material was transferred in to the Refining department. The transferred-in material was added to 5,000 kg that was already in process at March 31. In April, the Refining department completed 77,000 kg of material that was then transferred-out to the Finishing department. Costs per equivalent unit for transferred-in materials and conversion were $7.14 and $16.90, respectively. Inventory in the Refining department at both the beginning and the end of April was 50% complete as to transferred-in materials, and one-third complete as to conversion costs. Required: a) Calculate the total number of equivalent units at the end of April for each of transferred-in materials and conversion costs. b) Calculate WIL’s cost of work-in-process inventory for the Refining department at the end of April.

PLEASE TYPE THE ANSWER [NO HANDWRITING ->HARD TO UNDERSTAND]

Answer 1

Answer:

Input	Output	Equivalent Units
Particulars	Kg	Particulars	Kg	Material	Conversion
%	Kg	%	Kg
Opening WIP	5,000	Work on Opening WIP	5,000	50	2,500	66-2/3	3,333
New Material	75,000	Introduced & Completed during the period	72,000	100	72,000	100	72,000
Introduced		United Completed Completed & Transferred	77,000
		Closing WIP (b.f)	3,000	50	1,500	33-1/3	1,000
	80,000		80,000		73,500		73,000

Cost of Closing WIP:

Material (1500 * $ 7.14) = $ 10,710.00

Conversion Cost (1000* $16.90) = $ 16,900.00

= $ 27,610.00