Mullins Corporation uses the FIFO method in its process costing system. Data concerning the first processing department

Question

Mullins Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 700 Materials costs $ 11,500 Conversion costs $ 22,200 Percent complete with respect to materials 75 % Percent complete with respect to conversion 65 % Units started into production during the month 8,600 Units transferred to the next department during the month 7,800 Materials costs added during the month $ 159,300 Conversion costs added during the month $ 348,500 Ending work in process inventory: Units in ending work in process inventory 1,500 Percent complete with respect to materials 65 % Percent complete with respect to conversion 50 % The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: (Do not round intermediate calculations.)

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Beginning Work in Process 700 Completed & Transferred 7,800 Started during the Year 8,600 Ending Work in Process 1,500 Units to be accounted 9,300 Units to be accounted 9,300 Computation of Equivalent units: Units % Materials % Converstion Completed & Transferred 7,800 100% 7,800 100% 7,800 Ending Work in Process 1,500 65% 975 50% 750 Equivalent units 8,775 8,550 Computation of Cost per Unit: Materials Conversion Costs Total Beginning Work in Process 11,500 22,200 33,700 Cost added during the Year 159,300 348,500 507,800 Total Cost 170,800 370,700 541,500 Equivalent Units 8,775 8,550 Cost per Unit $19.46 $43.36 Computation of Cost of Ending Work in Process: Materials 975 $19.46 $18,977.78 Conversion 750 $43.36 $32,517.54 Cost of Ending Work in Process $51,495.32 answer

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Mullins Corporation uses the FIFO method in its process costing system

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Beginning Work in Process		700	Completed & Transferred		7,800
Started during the Year		8,600	Ending Work in Process		1,500
Units to be accounted		9,300	Units to be accounted		9,300


Computation of Equivalent units:
	Units	%	Materials	%	Converstion
Completed & Transferred	7,800	100%	7,800	100%	7,800
Ending Work in Process	1,500	65%	975	50%	750
Equivalent units			8,775		8,550


Computation of Cost per Unit:
			Materials	Conversion Costs	Total
Beginning Work in Process			11,500	22,200	33,700
Cost added during the Year			159,300	348,500	507,800
Total Cost			170,800	370,700	541,500
Equivalent Units			8,775	8,550
Cost per Unit			$19.46	$43.36



Computation of Cost of Ending Work in Process:
Materials	975	$19.46		$18,977.78
Conversion	750	$43.36		$32,517.54
Cost of Ending Work in Process				$51,495.32	answer