Equivalent Units and Product Cost ReportFIFO Method The foll

Equivalent Units and Product Cost Report—FIFO Method

The following data (and annotations) for March 2016 are for the work in process account of the first of Olympus Company\'s four departments used in manufacturing its only product.

Assuming that Olympus uses the FIFO method, that materials are added at the beginning of the process and that conversion costs are incurred evenly throughout, solve for the three missing numbers.

Round average cost per equivalent unit to two decimal places, if applicable. Round other answers to the nearest whole number, when appropriate.

Work in Process-Department 1
Beginning balance (3,000 units, 40% complete)	$27,300
Transferred to department 2 (23,000 units)	(a)
Direct material (24,000 units)	144,000
Direct labor	111,800
Manufacturing overhead	47,800
Ending balance [ (b) units, 25% complete]	(c)

QUESTION 6 Not complete Points out of 3.00 P Flag question Equivalent Units and Product Cost Report-FIFO Method The following data (and annotations) for March 2016 are for the work in process account of the first of Olympus Company\'s four departments used in manufacturing its only product. Work in Process-Department 1 Beginning balance (3,000 units, 40% complete) Transferred to department 2 (23,000 units) Direct material (24,000 units) Direct labor Manufacturing overhead Ending balance [ (b) units, 25% complete $27,300 144,000 111,800 47,800 Assuming that Olympus uses the FIFO method, that materials are added at the beginning of the process and that conversion costs are incurred evenly throughout, solve for the three missing numbers. Round average cost per equivalent unit to two decimal places, if applicable. Round other answers to the nearest whole number, when appropriate Olympus Company, Department 1 Flow of Units and Equivalent Units Calculation, March 2016 Equivalent Units Direct Materials Conversion Costs %in %in March March Complete/Transferred Beginning inventory Started & completed Ending inventory Total Product Cost Report Direct Materials Conversion Costs eginning Inventory Current Total Costs to Account For Total Equivalent Units Average cost /Equivalent unit eginning inventory Costs incurred in Month 0 S Costs incurred in Month 1 Started and finished Cost of Goods Manufactured Ending Inventory Direct Materials Conversion costs Cost of Ending Inventory C. Total Costs Allocated

Solution

FIFO method Beggining units 3000 Transferred out 23,000 Started into production 24000 Ending units 4,000 27000 27000 Equivalent units Material Conversion Beginning units 3000 3000 Completion in current period 0% 60% A 0 1800 Units started and completed 20000 20000 Completion 100% 100% B 20000 20000 Ending Units 4,000 4,000 Completion 100% 25% C 4000 1000 Total units A+B+C 24000 22800 Cost per equivalent units Per unit cost Cost Total units Per unit cost Material cost 144000 24000 6.00 Conversion cost 159600 22800 7.00 303600 13.00 Cost of goods sold Material convertion cost Beginning inventory completed Completion 0% 60% Per unit cost 6.00 7.00 Units 3000 3000 Total cost   A 0.00 12600 12600 Units started and completed Completion 100% 100% Per unit cost 6.00 7.00 Units 20000 20000 Total cost    B 120000 140000 260000 Beginning work in progress C 27300 Total cost A+B+C 299900 Ending work in progress Completion 100% 25% Per unit cost 6.00 7.00 Units 4,000 4,000 Total cost     24000 7000 31000 Total cost accounted for 330900