SOAL 2

FIFO Method
Flow of Production
WIP Beginning Inventory
Started during Current Period
to Account for
Completed and transferred out during current Period
From beginning WIP

Physical Units
265
492
757
265

Started and Completed

298

WIP, Ending Inventory

194

Account for
Equivalent units of work done in current period

757

WIP Beginning
Cost added in Current Period
Total Cost to account for

Total production
$212,000
$325,000
$537,000

Cost added in Current Period

Divide by equivalent units of work
Cost per equivalent unit of work
Assignment of costs:
Completed and transferred out:
WIP, Beginning
Cost added to beginning WIP in current Period

$212,000
$47,604.60

Total from beginning inventory

Started and completed

$259,604.60
$194,400.30

Total costs of units completed and transferred out

WIP, Ending Inventory

$454,004.90
$82,993.20

Total cost accounted for

$536,998.10

Direct Material

Conversion Cost

(Work done before Current Period)

265x(100%-100%) 265x(100%-60%)
0
106
(298x100%)
(298x100%)
298
298
194x100%
194x50%
194
97
492
Direct Material
$160,000
$100,000
$260,000

501
Conversion Cost
$52,000
$225,000
$277,000

$100,000
: 492
$203.25

$225,000
: 501
$449.10

$160,000

$52,000

(0*203.25)
0

(106*449.1)
$47,604.60

(298*203.25)
$60,568.50

(298*449.1)
$133,831.80

(194*203.25)
$39,430.50
$259,999.00

(97*449.1)
$43,562.70
$276,999.10