FIFO method, assigning costs.
using the FIFO method. Note that you first need to calculate the equivalent units of work done in the current period (for direct materials and conversion costs) to complete beginning work in process, to start and complete new units, and to produce ending work in process.
|
Equivalent Units |
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|
Physical Units |
Direct Materials |
Conversion Costs |
|
|
Work in process, July 1 |
8,500 |
8,500 |
1,700 |
|
Started during July |
35,000 |
||
|
Completed and transferred out during July |
33,000 |
33,000 |
33,000 |
|
Work in process, July 31 |
10,500 |
10,500 |
6,300 |
|
Total Costs for July 2008 |
||
|
Work in process, beginning |
||
|
Direct materials |
$63,100 |
|
|
Conversion costs |
45,510 |
$108,610 |
|
Direct materials added during July |
284,900 |
|
|
Conversion costs added during July |
485,040 |
|
|
Total costs to account for |
$878,550 |
|