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Chapter 6-FIFO

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

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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)
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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...
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