Damesin Inc $\text {Work in process, beginning:}$ $\text {Costs in the beginning inventory:}$

question 62

Essay

Damesin 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. $\text {Work in process, beginning:}$
$\begin{array}{ll}\text { Units in process..................................... } & 100 \\\text { Percent complete with respect to materials...…. } & 90 \% \\\text { Percent complete with respect to conversion........ } & 30 \%\end{array}$

$\text {Costs in the beginning inventory:}$

$\begin{array}{llcc} \text { Materials cost.......................................................} &\$153\\ \text { Conversion cost.................................................... } &\$711\\ \text { Units started into production during the month ...} &25,000\\ \text {Units completed and transferred out...................... } &24,400\\\end{array}$

$\text {Costs added to production during the month:}$
$\begin{array}{llcc} \text {Materials cost........................................................ } &\$37,200\\ \text { Conversion cost....................................................} &\$591,600\\\end{array}$

$\text {Work in process, ending:}$

$\begin{array}{ll}\text { Units in process................................... } & 700 \\\text { Percent complete with respect to materials............ } & 70 \% \\\text { Percent complete with respect to conversion........ } & 40 \%\end{array}$ 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 ending work in process inventory.
d.Determine the cost of units transferred out of the department during the month.

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Definitions:

Investment Opportunity

A potential venture, asset, or market where investing could yield profitable returns.

Required Rate of Return

The minimum return an investor expects to earn on an investment, considering its risk level and alternative opportunities.

Margin

The difference between the selling price of a product or service and its cost, expressed as a percentage of the selling price.

Turnover

A measure of a company's sales or revenues relative to the average value of its assets, inventory, or employees.