Daosta Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. Work in process, beginning: Units in process 900? Percent complete with respect to materials 40?%Percent complete with respect to conversion 20?%Costs in the beginning inventory: Materials cost$530? Conversion cost$2108? Units started into production during the month 16,000? Units completed and transferred out 16,000? Costs added to production during the month: Materials cost$32,180? Conversion cost$416,512? Work in process, ending: Units in process 900? Percent complete with respect to materials?50?%Percent complete with respect to
conversion 50?%Required:Using the FIFO method:a. Determine the equivalent units of production for materials and conversion costs.?Equivalent Units of ProductionMaterials?Conversion?b. Determine the cost per equivalent unit for materials and conversion costs.?Cost per Equivalent UnitMaterials?Conversion?c. Determine the cost of ending work in process inventory.Cost of ending WIP?d. Determine the cost of units transferred out of the department during the month.Cost of units transferred out?
What will be an ideal response?
a.
| ? | Equivalent Units of Production |
| Materials | 16,090? |
| Conversion | 16,270? |
| ? | Cost per Equivalent Unit |
| Materials | $2.00? |
| Conversion | $25.60? |
| Cost of ending WIP | $12,420? |
| Cost of units transferred out | $438,910? |
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