FIFO Method, valuation of Goods Transfered Out and Ending Work in Process

K-Bridge Company uses the FIFO Method to account for the costs of production. For Crushing, the first processing department, the following equivalent units schedule has been prepared

Units started and completed 28,000   28,000

Units, beginning work in process

10,000 x 0%

10,000 x 40%

Units, ending work in process:

6,000 x 100%

6,000 x 75%

The cost of beginning work in process was direct materials, $40,000; conversion costs, $30,000.

Required:

1. Determine the cost of ending work in process

2. Determine the cost of goods transfered out.

2. Prepare a physical flow scheddule

Exercise 6.20

Weighted Average Method, Unit Cost, Valuation of Good transfered Out and Ending Work in Process

Holmes products Inc., produces plastic cases used for video cameras. The product passes through three departments. For April, the following equivalent units schedule was prepared for the first department:

Cost assigned to beginning work in proicess: direct materials, $90,000; conversion costs, $33,750. Manufacturing costs incurred during April; direct materials. $75,000; conversion costs. $220,000. Holmes uses the weighted average method

Required:

1. Compute the unit cost for April. If required, round your answers to the nearesr cent.

Determine the cost of ending work in process and the cost of good transfered out.

Exercise 6.23

FIFO Method, Equivalent Units, Unit Cost, Multiple Departments

Fordman Company has aproduct that passes through two processes: grinding and pol- ishing. During December, the grinding department transferred 20,000 units to the Polishing Department. The cost of the units transfered into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments.

The second department (Polishing) had the following physical flow schedule for December:

Cost of Beginning work in process for the Polishing Department were direct materials, $5,000; conversion costs, $6,000; and transfered in , $8,000. Costs added during the month: direct materials, $32,000; conversion costs, $50,000; and transfered in, $40,000.

Assume the company uses the FIFO Method.

1. Prepare a schdeule of equivalent units. Enter percentages as whole numbers.

Compute the unit cost for the month of December. Round intermediate calculations and your final answer to the nearest cent.