Troe Corp manufactures a product that passes through two
departments. Data for a recent month for the first department
are:
Beginning WIP contains 130,000 units with cost
of direct material being $89,500, conversion cost of $139,200.
Material was 80% complete, Labor and OH was 60% complete.
The number of units started in the process is 819,000, units
transferred out are 903,000 and WIP ending inventory is
46,000 units (material is 36% complete and conversion is 53%
complete).
The WIP ending inventory is 36% complete with
respect to direct material and .53 with respect to conversion. Cost
added during the month for material is $1,036,222, and $1,274,240
for conversion
Calculate (using the weighted average method
and then the FIFO method) the equivalent units of
production regarding direct materials, and conversion.
Secondly, calculate the cost per equivalent unit
for direct materials, and conversion
Weighted Average
FIFO