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Accounting Stuff 1

The document outlines the FIFO method for two departments over the months of July and August, detailing the units, percentage completion, and costs associated with direct materials and conversion costs. It includes a quantity schedule, unit costs, and the total costs accounted for in each department. The final answer summarizes the equivalent units of production for direct materials and conversion costs for the FIFO method.

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Ji Zaragoza
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100 views8 pages

Accounting Stuff 1

The document outlines the FIFO method for two departments over the months of July and August, detailing the units, percentage completion, and costs associated with direct materials and conversion costs. It includes a quantity schedule, unit costs, and the total costs accounted for in each department. The final answer summarizes the equivalent units of production for direct materials and conversion costs for the FIFO method.

Uploaded by

Ji Zaragoza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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FIFO Method for Department A [July]

Units Percentage complete


Materials Conversion
Beginning WIP 2,000 75% 75%
Start of production 28,000
Completed and transferred 25,000 100% 100%
Ending WIP 5,000 30% 30%

Quantity Schedule
Units to be accounted for:
Beginning WIP 2,000
Start of production 28,000
Total to be accounted for 30,000

Materials Conversion
Units accounted for:
Transferred out from beginning WIP 2,000 500 500
rted and completed within the month 23,000 23,000 23,000
Total transferred out 25,000 23,500 23,500
Ending WIP 5,000 1,500 1,500
Total equivalent units 25,000 25,000

Unit Costs
Current Cost / Equivalent Cost = Unit Cost
Direct Materials 8,750 25,000 0.35
Conversion Costs 6,250 25,000 0.25
Total 15,000 0.6
Beginning WIP 3,250
Add: Cost 15,000
Total Cost 18,250

Accounted for:
Transferred to next department from beginning WIP
Cost of beginning WIP 3,250
Cost to complete:
Material -> 500 x 0.35 175
Conversion -> 500 x 0.25 125
Total cost of beginning WIP 3,550

Started and completed within this month


Material -> 23,000 x 0. 80,050
Conversion -> 23,000 x 0. 5,750
Total 13,800

Ending WIP
Material -> 1,500 x 0.3 525
Conversion -> 1,500 x 0.2 375
Total 900
FIFO Method for Department A [August]
Units Percentage complete
Materials Conversion
Beginning WIP 5,000 30% 30%
Start of production 35,000
Completed and transferred 30,000 100% 100%
Ending WIP 10,000 15% 15%

Quantity Schedule
Units to be accounted for:
Beginning WIP 5,000
Start of production 35,000
Total to be accounted for 40,000

Materials Conversion
Units accounted for:
Transferred out from beginning WIP 5,000 3,500 3,500
rted and completed within the month 25,000 25,000 25,000
Total transferred out 30,000 28,500 28,500
Ending WIP 10,000 1,500 1,500
Total equivalent units 30,000 30,000

Unit Costs
Current Cost / Equivalent Cost = Unit Cost
Direct Materials 10,000 30,000 0.35
Conversion Costs 4,500 30,000 0.15
Total 15,000 0.5
Beginning WIP 900
Add: Cost 15,000
Total Cost 15,900

Accounted for:
Transferred to next department from beginning WIP
Cost of beginning WIP 900
Cost to complete:
Material 1,225
Conversion 525
Total cost of beginning WIP 2,650

Started and completed within this month


Material 8,750
Conversion 3,750
Total 12,500
Transferred to Department B 15,150

Ending WIP
Material 525
Conversion 225
Total 750
FIFO Method for Department B [July]
Units Percentage complete
Materials Conversion
Beginning WIP 5,000 30% 40%
Start of production 25,000
Completed and transferred 25,000 100% 100%
Ending WIP 5,000 60% 60%

Quantity Schedule
Units to be accounted for:
Beginning WIP 5,000
Start of production 25,000
Total to be accounted for 30,000

Materials Conversion
Units accounted for:
Transferred out from beginning WIP 5,000 3,500 3,000
rted and completed within the month 20,000 20,000 20,000
Total transferred out 25,000 23,500 23,000
Ending WIP 5,000 3,000 3,000
Total equivalent units 26,500 26,000

Unit Costs Current Cost / Equivalent Cost = Unit Cost


Transferred in Cost: 17,350 25,000 0.694
Direct Materials 26,500 26,500 1
Conversion Costs 78,000 26,000 3
Total 104,500 4
Beginning WIP 5,000
Add: Cost 104,500
Total Cost 109,500

Accounted for:
Transferred to next department from beginning WIP
Cost of beginning WIP 5,000
Cost to complete:
Material 3,500
Conversion 9,000
Total cost of beginning WIP 17,500

Started and completed within this month


Transferred in cost 13,880
Material 20,000
Conversion 60,000
Total 93,880

Ending WIP
Transferred in cost 3,470
Material 3,000
Conversion 9,000
Total 15,470
FIFO Method for Department B [August]
Units Percentage complete
Materials Conversion
Beginning WIP 5,000 60% 60%
Start of production 30,000
Completed and transferred 25,000 100% 100%
Ending WIP 10,000 30% 40%

Quantity Schedule
Units to be accounted for:
Beginning WIP 5,000
Start of production 30,000
Total to be accounted for 35,000

Materials Conversion
Units accounted for:
Transferred out from beginning WIP 5,000 2,000 2,000
ted and completed within the month 20,000 20,000 20,000
Total transferred out 25,000 22,000 22,000
Ending WIP 10,000 3,000 4,000
Total equivalent units 26,500 26,000

Unit Costs Current Cost / Equivalent Cost = Unit Cost


Transferred in Cost: 15,150 30,000 0.505
Direct Materials 26,500 26,500 1.06
Conversion Costs 78,000 26,000 3
Total 119,650 4.06
Beginning WIP 15,470
Add: Cost 119,650
Total Cost 135,120

Accounted for:
Transferred to next department from beginning WIP
Cost of beginning WIP 15,470
Cost to complete:
Material 2,120
Conversion 6,000
Total cost of beginning WIP 23,590

Started and completed within this month


Transferred in cost 10,100
Material 21,200
Conversion 60,000
Total 91,300

Ending WIP
Transferred in cost 5,050
Material 3,180
Conversion 12,000
Total 20,230
FINAL ANSWER:
Method D
Direct Materials 38,000
Conversion Costs 36,800

FIFO method
Direct Material
Unit % added Equivalent units of production
Beginning work in process 10,000 0% 0
Units start and completed 30,000 100% 30,000
Ending WIP 8,000 100% 8,000
38,000

Conversion Costs
Unit % added Equivalent units of productio
Beginning work in process 10,000 20% 2,000
Units start and completed 30,000 100% 30,000
Ending WIP 8,000 60% 4,800
36,800

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