Auguste Corporation Uses the FIFO Method in Its Process Costing $\quad$

question 10

Essay

Auguste Corporation uses the FIFO method in its process costing.The following data pertain to its Assembly Department for October. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\underline{\text { Percent Complete }}$
$\begin{array}{lrr}&\text { Units }&\text {Materials}&\text { Conversion }\\\text { Work in process, October 1.................... } & 500 & 70 \%&15\% \\\text { Units started into production during October... } & 9,400 & \\\text { Units completed during October and } & & \\\text { transferred to the next department ............ } & 8,800 & \\\text { Work in process, October } 31 \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots . & 1,100 & 75 \%&20\%\end{array}$
Required:
Compute the equivalent units of production for both materials and conversion costs for the Assembly Department for October using the FIFO method.

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Definitions:

Monetary Compensation

Payment provided to employees or workers in the form of money for their services or labor.

Labor Time

The duration of time workers spend performing their duties to produce goods or provide services.

No Further Deposits

A situation or condition where no additional deposits or contributions are allowed.

Future Value

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today, considering interest or capital gains.