Requirements:1. Compute the equivalent units for materials and conversion costs.2. Compute the unit costs for materials and coversion costs.3. Compute the cost of goods transfered out.4. Compute the costs of the ending inventory. A company uses the FIFO mcthod to account for its work in proccss inventories. Theaccount records show the following information:Beginning work in process inventoryMaterialsConversion costsDebits to work in process inventory this period:P360180MaterialsConversion costsUnits:Beginning inventoryPercent of completion (materials, 60%, conversion cost, 30%)Started this periodEnding inventoryPercent of completion: materials, 40%, conversion cost, 20%P 3,7142.258300 units2,000 units600 unitsRequirements:1. Compute the equivalent units for materials and conversion costs.2. Compute the unit cost for materials and conversion costs.3. Compute the cost of goods transferred out.4. Compute the cost of the ending inventory.

Answer 1) Equivalent units for material and conversion costs. Physical units % material %…

Answered: the equivalent units for materials and…

the equivalent units for materials and conversion costs. 2. Compute the unit costs for materials and coversion costs. 3. Compute the cost of go

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 7PA: The following data show the units in beginning work in process inventory, the number of units...

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Question

Requirements:

1. Compute the equivalent units for materials and conversion costs.

2. Compute the unit costs for materials and coversion costs.

3. Compute the cost of goods transfered out.

4. Compute the costs of the ending inventory.

A company uses the FIFO mcthod to account for its work in proccss inventories. The
account records show the following information:
Beginning work in process inventory
Materials
Conversion costs
Debits to work in process inventory this period:
P
360
180
Materials
Conversion costs
Units:
Beginning inventory
Percent of completion (materials, 60%, conversion cost, 30%)
Started this period
Ending inventory
Percent of completion: materials, 40%, conversion cost, 20%
P 3,714
2.258
300 units
2,000 units
600 units
Requirements:
1. Compute the equivalent units for materials and conversion costs.
2. Compute the unit cost for materials and conversion costs.
3. Compute the cost of goods transferred out.
4. Compute the cost of the ending inventory.

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