The document calculates costs using the FIFO method for direct materials, direct labor, and factory overhead. It determines equivalent units produced, unit costs, and the total cost of goods put into production during the period, including opening work in progress. The total cost of goods put into production was $134,000 using FIFO.
The document calculates costs using the FIFO method for direct materials, direct labor, and factory overhead. It determines equivalent units produced, unit costs, and the total cost of goods put into production during the period, including opening work in progress. The total cost of goods put into production was $134,000 using FIFO.
The document calculates costs using the FIFO method for direct materials, direct labor, and factory overhead. It determines equivalent units produced, unit costs, and the total cost of goods put into production during the period, including opening work in progress. The total cost of goods put into production was $134,000 using FIFO.
Calculation of equivalent unit produced under FIFO;
Direct Material 1,000 x 90% + 200 = 1,100 Direct Labor 1,000 x 75% + 200 = 950 F.O.H 1,000 x 60% + 200 = 800 b. Per cost using FIFO; Direct Material 60,000/1,100 = 54.54 Direct Labor 36,000/950 = 37.89 F.O.H 22,000/800 = 27.5 Total 119.93 c. Cost incurred on opening WIP during June 2019 FIFO; Cost already incurred on opening WIP = 16000 Direct Material 1000 x 90%= 900 x54.54 = 49086 Direct Labor 1000 x 75%= 750 x 37.90 = 28417.5 F.O.H 1000 x 60%= 600 x 27.5 = 16500 Total = 110003.5 Cost of units put into the process during the period. 200x 119.93 = 23986 134000