Figure 612 Twinnings Corporation manufactures Scheduling Boo

Figure 6-12

Twinnings Corporation manufactures Scheduling Books. There are two processes: printing and binding. The following information is given for the printing department for September. (The company uses FIFO inventory assumption.)

Units:

units, beginning work in process 40,000 (30% complete for materials, 70% complete for conversion)

started 300,000

completed ?

units, ending work in process 50,000 (35% complete for materials, 90% complete for conversion)

Costs:                                                  Materials         Conversion   Total

beginning work in process $ 6,080 $ 2,160             $ 8,240

current costs                                       $192,075   $33,770             $225,845

total costs                                            $198,155 $35,930             $234,085

42. Refer to Figure 6-12. What are the FIFO equivalent units for conversion?

a.

306,000

b.

340,000

c.

317,000

d.

307,000

43. Refer to Figure 6-12. What are the FIFO cost per unit for conversion?

a.

$0.90

b.

$0.11

c.

$0.66

d.

$0.10

44. Refer to Figure 6-12. What are the FIFO cost per unit for materials?

$1.00

$0.77

$0.75

$0.65

Solution

42 ) FIFO equivalent unit of conversion = (40000*30%+250000*100%+50000*90%) = 307000 Units

So answer is d) 307000

43) FIFO cost per equivalent of conversion = 33770/307000 = 0.11

So answer is b) $0.11

44) Equivalent unit of material = (40000*70%+250000*100%+50000*35%) = 295500

FIFO cost per unit of material = 192075/295500 = 0.65

So answer is d) $0.65