Problem 1: Crespo Deodorant produces using a process cost system under the first in, first out method. All material is assumed to be added at the beginning of the process. The company started the period with 5,000 units 60% completed with a cost of $45,000. During the period, 15,000 units were transferred into the second department. Ending inventory was 2,000 units 30% completed. Direct labor costs were $89,000, factory overhead was $100,000 and direct materials transferred into the process were $360,000.

Part a: Complete the chart below.


Actual Units




Conversion Cost

Total Cost

Beginning Inventory




Started and Completed

Ending Inventory

I’m having difficulties with this problem. I’ve read the 3 different versions we have of this chapter, which the teacher keeps changing. I’ve started completing it, but I’m not understanding it. This is a virtual class so it’s very hard to follow up with the teacher. Thank you, any guidance will help.