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Dengo Company makes a trail mix in two departments: Roasting and Blending. Direct materials are added at the
beginning of each process, and conversion costs are added evenly throughout each process. The company uses the FIFO
method of process costing. October data for the Roasting department follow.
Direct
Materials Conversion
Percent Percent
Units
Complete Complete
3,500
100%
30%
19,700
23,200
2,900
100%
70%
$ 122,270
Beginning work in process inventory
Units started and completed
Units completed and transferred out
Ending work in process inventory
Beginning work in process inventory
Costs added this period
Direct materials
Conversion
Total costs to account for
$ 271,200
1,196,910
1,468,110
$ 1,590,380
2. Compute cost per equivalent unit of production for both direct materials and conversion.
Cost per equivalent unit of production
Cost of ending work in process
+ Equivalent units of production
Cost per equivalent unit of production
Materials
Conversion