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

question 25

Essay

Epstein 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. $\text {Work in process, beginning:}$
$\begin{array}{ll}\text { Units in process..................................... } & 700 \\\text { Percent complete with respect to materials...…. } & 70 \% \\\text { Percent complete with respect to conversion........ } & 70 \%\end{array}$

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

$\begin{array}{llcc} \text { Materials cost.......................................................} &\$3,332\\ \text { Conversion cost.................................................... } &\$14,602\\ \text { Units started into production during the month ...} &23,000\\ \text {Units completed and transferred out...................... } &23,300\\\end{array}$

$\text {Costs added to production during the month:}$
$\begin{array}{llcc} \text {Materials cost........................................................ } &\$155,394\\ \text { Conversion cost....................................................} &\$690,192\\\end{array}$

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

$\begin{array}{ll}\text { Units in process................................... } &400 \\\text { Percent complete with respect to materials............ } & 70 \% \\\text { Percent complete with respect to conversion........ } & 30 \%\end{array}$ 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:

Unidimensional

Describing or pertaining to a concept or measurement that involves only one aspect or dimension.

Cyclical

Describes a process that repeats itself in a predictable pattern over a period of time.

Family Development Theory

Examines the changes that families experience over the lifespan.

Lifespan

The total number of years that an organism is expected to live under ideal conditions.