Compute Costs per Equivalent Unit: FIFO Method
The Matsui Lubricants plant uses the weighted average method to account for its work in process inventories. The accounting records show the following information for a particular day:
Beginning WIP inventory Direct materials |
$ 976 |
Conversion costs |
272 |
Current period costs Direct materials |
11,440 |
Conversion costs |
6,644 |
Quantity information is obtained from the manufacturing records and includes the following:
Beginning inventory |
600 units (60% complete as to materials, |
|
53% complete as to conversion) |
Current period units started |
4,000 units |
Ending inventory |
1,200 units (40% complete as to materials, |
|
20% complete as to conversion) |
Required
Compute the cost per equivalent unit for direct materials and for conversion costs using the FIFO method.