Problem 20-5B (80 minutes)
Part 1
SWITCH COMPANY
Process Cost Summary – FIFO Method
For Month Ended January 31
Costs Charged to Production
Costs of beginning work in process
0
Total units to account for................260,00
0
Total units accounted for......... 260,000
Equivalent units of production
Direct
Materials Conversion
Units to complete beginning WIP
Direct materials (10,000 x 25%)........ 2,500 EUP
Conversion (10,000 x 40%)……….…… 4,000 EUP
[Continued on next page]Problem 20-5B (Concluded)
Cost per EUP
Direct
Materials Conversion
Costs incurred this period..…............. $ 112,500 $ 616,000
÷ EUP……………………………………..……… ÷ 232,500 ÷ 226,000
Cost to complete beginning work in process
Direct materials (2,500 EUP x $0.484 per EUP)...................$ 1,210
Conversion (4,000 EUP x $2.726 per EUP)………………….….. 10,904 12,114
Costs of units started and completed this period
Direct materials (210,000 EUP x $0.484 per EUP)...............101,640
Total costs accounted for*…………………..……………….………… $785,946
* $106 difference from total costs to account for due to rounding
Part 2
Jan. 31 Finished Goods Inventory………………………………………743,554
Work in Process Inventory……………………………….. 743,554
1. Units in beginning inventory………………………………….. 62,500
2. Equivalent units of production—FIFO
Direct
Equivalent units of production Materials Conversion
3. Cost per equivalent unit of direct materials and conversion—FIFO
Direct
4. Assignment of costs to output of department—FIFO
Costs of goods transferred out
Cost of beginning work in process inventory.………..
Direct materials………………………………..………….…….. $ 99,075
Conversion………………………………………………….…….. 53,493 $ 152,568
Direct materials (175,000 EUP x $2.50 per EUP)...... 437,500
Conversion (175,000 EUP x $2.20 per EUP)............. 385,000
Total cost of units started and completed..………….. 822,500
Total costs of goods transferred out……………………... 1,096,318
Problem 20-7B (80 minutes)
Part 1
BELDA CO.—Cutting Department
Process Cost Summary – FIFO Method
For Month Ended March 31
Costs Charged to Production
Conversion…………………………………………………………….… 1,233,960 1,457,160
Total costs to account for………………………………………..…. $1,571,680
Unit cost information
Units to account for Units accounted for
0
Equivalent units of production
Direct
Materials Conversion
Units to complete beginning WIP
