FIFO method. Using the FIFO method of process costing. Explain any difference between the cost per equivalent unit in the assembly department under the weighted average method and the FIFO method.
|
Physical Units (Car Seats) |
Direct Materials |
Conversion Costs |
|
|
Work in process, October 1 |
5,000 |
$1,250,000 |
$ 402,750 |
|
Started during October 2012 |
20,000 |
||
|
Completed during October 2012 |
22,500 |
||
|
Work in process, October 31 |
2,500 |
||
|
Total costs added during October 2012 |
$4,500,000 |
$2,337,500 |