Question: Data concerning a recent period's activity in the Assembly Department, the first processing department in a company that uses process costing, appear below:
|
Materials |
Conversion |
| Cost of work in process inventory at the beginning of the period |
$ |
2,400 |
$ |
730 |
| Equivalent units of production in the ending work in process inventory |
|
350 |
|
280 |
Equivalent units of production required to complete the beginning work
in process inventory |
|
590 |
|
1,250 |
| Cost per equivalent unit for the period |
$ |
2.30 |
$ |
.50 |
A total of 25,200 units were completed and transferred to the next processing department during the period. Beginning work in process inventory consisted of 2,300 units and`ending work in process inventory consisted of 2,200 units.
Required: Using the FIFO method, compute the cost of the units transferred to the next department during the period and the cost of ending work in process inventory.