{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 6-FIFO - R.M to complete 5 x 1.458 = 7.29 D.L to...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
FIFO It is necessary to determine which units attach to the current costs. To determine the cost of this accounting period only, remember the beginning inventory is the first inventory transferred out. Units Dir. Material Units Dir. Labor Units M.O.H. Completed 60 60 60 + E.I. Equiv. Units 4 2 2 Equiv. Units if NO Beg W.I.P 64 62 62 - B.I. Equiv. Units 5 4 4 Eq. Units worked on this accounting period 59 Units 58 Units 58 Units Current cost $86 $116 $180 $86/59 = $1.458 $116/58 = $2 $180/58 = $3.104 Total $6.562 ($1.458+$2+$3.104) $6.562 is accounting period cost to complete 1 unit. To calculate cost of completing beginning W.I.P. (10 units)
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: R.M. to complete 5 x 1.458 = 7.29 D.L. to complete 6 x 2.000 = 12.00 M.O.H. to complete 6 x 3.104 = 18.62 To complete beginning W.I.P 37.91 +Beginning W.I.P. Cost (last Period) 24.00 Remember: to complete Beg. W.I.P needs 5 units of R.M. , 6 units of Direct labor & M.O.H Cost of First 10 COGM 61.91 6.191 Per Unit B. WIP +Cost of next 50 Units @ $6.562 328.10 6.562 current cost per unit Cost of Goods manufactured 390.01 390.01/ 60 = 6.50 Cost Per Unit Ending Working Process +Direct M. 4 x $1.458 = $5.83 +Direct Lab. 2 x $2.000 = $4.00 +M.O.H 2 x $3.104 = $6.21 $16.04 $16.04 Total Cost to Account for $406.05 $.05 from rounding...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern