(FIFO cost per EUP)The following information has been gathered from the records of Jack’s Snacks for August 2001. The firm makes a variety of snacks; the information presented here is for a cashew and dried mango mix. Materials are added at the beginning of processing; overhead is applied on a direct labor basis. The mix is transferred to a second department for packaging. Jack’ uses a FIFO process costing system.
|
Beginning WIP inventory (40% complete as to conversion) |
5,000 pounds |
|
Mix started in August |
90,400 pounds |
|
Ending WIP inventory (70% complete as to conversion) |
4,000 pounds |
|
Materials cost incurred in August |
$415,840 |
|
Conversion costs incurred in August |
$106,030 |
Beginning inventory cost totaled $13,875. For August 2001, compute the following:
a.Equivalent units of production by cost component.
b.Cost per equivalent unit by cost component.
c.Cost of mix transferred to the packaging department in August.
d.Cost of August’s ending inventory.