Johnstone Brewers 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 progress, beginning
Units in progress 300
Stage of completion with respect to materials 60%
Stage of completion with respect to conversion 80%
Costs in the beginning inventory:
Materials cost $594
conversion cost $8,256
units started into production during the month 26,000
units completed and transferred out 25,500
costs added to production during the month:
Materials cost 79,732
conversion cost 887,626
work in process, ending
units in process 800
Stage of completion with respect to materials 50%
Stage of completion with respect to conversion 40%
Required:
Using the FIFO method:
a) Determine the equivalent units of production for materials and conversion costs.
b) Determine the cost per equivalent unit for materials and conversion costs.
c) Determine the cost of units transferred out of the department during the month.
d) Determine the cost of ending work-in-process inventory in the department.