Question

Montreal Manufacturing Inc. has the following cost and production data for the month of April.

Beginning WIP		17,100	units
Started in production		104,500
Completed production		91,300
Ending WIP		30,300

The beginning inventory was 60% complete for conversion costs. The ending inventory was 40% complete for conversion costs. Materials are added at the beginning of the process.

Costs pertaining to the month of April are as follows:

Beginning inventory costs are:
Materials		$66,100
Direct labour		19,500
Factory overhead		13,600
Costs incurred during April include:
Materials		$569,525
Direct labour		199,100
Factory overhead		359,860

Calculate the equivalent units of production for materials and conversion costs for the month of April using the first-in, first-out (FIFO) method.

		Materials	Conversion costs
Total equivalent units

Calculate the unit costs for the month. (Round unit cost to 3 decimal places, e.g. 15.256.)

		Unit costs
Materials		$
Conversion costs		$
Total		$

Determine the costs to be assigned to the units transferred out and in ending work in process. (Round answers to 0 decimal places, e.g. 5,275.)

		Total		Materials		Conversion
Beginning Inventory		$		$		$
Complete beginning WIP
Started and completed
Cost for units transferred out		$		$		$
Ending work in process
Total costs		$		$		$

Answer 1

Physical Units

Working process begining	17100
Started during period	104500
To account for	121600
Good unit compleeted	91300
Working process ending	30300
To account for	121600

Equivalent Units

	Direct Materials	Conversion Costs
Completion of Begining working process	-	6840
Started & Compleeted	74200	74200
Starting of Ending working process	30300	12120
TOTAL EUP - FIFO	102700	93160

Cost per equivalent Units

Costs	Total	Direct Material	Conversion Cost
Cost during the period	1128485	569525	558960
Divided by Equivalent units		102700	93160
Equivalent unit costs	11.546	5.546	6

Assigned of cost

Cost of goods copmleeted and transferred durung the month :

=74200 * 5.564 + 81040 * 6 = 412848.8 + 486240 = 899088.8

Cost of goods ending working process :

= 30300 * 5.546 + 6 * 12120 = 168043.8 + 72720 = 24076.38