Homework SourseThe Matsui Lubricants plant uses the FIFO method to account
The Matsui Lubricants plant uses the FIFO method to account for its work-in-process inventories. The accounting records show the following information for a particular day:
Quantity information is obtained from the manufacturing records and includes the following:
Compute the cost per equivalent unit for direct materials and for conversion costs using the FIFO method. (Round your answers to 2 decimal places.)
| The Matsui Lubricants plant uses the FIFO method to account for its work-in-process inventories. The accounting records show the following information for a particular day: |
Solution
Equivalent unit :
Cost per equivalent unit of material = 22490/3443 = $6.53
Cost per equivalent unit of conversion = 13414/3145 = $4.27
| Whole unit | % | EUP-material | % | EUP-conversion | |
| Beginning work in process | 610 | 30% | 183 | 50% | 305 |
| Unit started and completed | 2700 | 100% | 2700 | 100% | 2700 |
| Ending work in process | 1400 | 40% | 560 | 10% | 140 |
| Equivalent unit of production | 4710 | 3443 | 3145 | ||
