Problem:
(FIFO cost per EUP)The following information has been gathered from the records of Jack's Snacks for August 2001. The firm makes a variety of snacks; the information presented here is for a cashew and dried mango mix. Materials are added at the beginning of processing; overhead is applied on a direct labor basis. The mix is transferred to a second department for packaging. Jack' uses a FIFO process costing system.
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Beginning WIP inventory (40% complete as to conversion)
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5,000 pounds
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Mix started in August
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90,400 pounds
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Ending WIP inventory (70% complete as to conversion)
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4,000 pounds
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Materials cost incurred in August
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$415,840
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Conversion costs incurred in August
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$106,030
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Beginning inventory cost totaled $13,875. For August 2001, compute the following:
a.Equivalent units of production by cost component.
b.Cost per equivalent unit by cost component.
c.Cost of mix transferred to the packaging department in August.
d.Cost of August's ending inventory.