Asked by Taylor Johnson Mathias on May 12, 2024
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The inventory at June 1 and costs charged to Work in Process-Department 60 during June are as follows: 
During June, 32,000 units were placed into production and 31,200 units were completed, including those in inventory on June 1. On June 30, the inventory of work in process consisted of 4,600 units which were 85% completed. Inventories are costed by the first-in, first-out method and all materials are added at the beginning of the process.Determine the following
(round unit cost data to four decimal places to minimize rounding differences):
(a)Equivalent units of production for conversion cost
(b)Conversion cost per equivalent unit
(c)Total and unit cost of finished goods started in prior period and completed in the current period
(d)Total and unit cost of finished goods started and completed in the current period
(e)Total cost of work in process inventory, June 30
Conversion Cost
The total cost of converting raw materials into finished products, including both direct labor and manufacturing overhead expenses.
Equivalent Units
A concept in cost accounting used to allocate costs to partially completed goods, measured in terms of the amount of work done.
First-In, First-Out
An inventory valuation method where goods first produced or acquired are sold or used first.
- Determine the equivalent units for conversion costs and materials through the application of FIFO and average cost strategies.
Verified Answer
Learning Objectives
- Determine the equivalent units for conversion costs and materials through the application of FIFO and average cost strategies.
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