  Textbook Solutions Expert Q&A Practice 

home / study / business / accounting / accounting questions and answers / question 3 tiger co. uses...
Find solut ions for your homework

Question: Question 3
Tiger Co. uses FIFO method of process
costing to account for the
production of canned ...

Question 3

Tiger Co. uses FIFO method of process costing to account for the
production of canned food. Begining
inventory for January consited
of 6,000 units that were 25% completed. Direct materials are added
at the
beginning of the process and conversion costs are incurred
uniformly throughout the process. 14,000
units were started into
the process during Janauary. During January 18,000 units were
completed. Ending
inventory still in the process at the end of
January conisted of 2,000 units that were 75% completed.
Beginning
inventory consisted of $29,400 in materials and $3,600 in
conversion costs. January costs were
$56,000 for materials and
$28,800 for conversion costs. The cost per unit using the FIFO
method would
be

Select one:

a.

$8.50

b.

$4.00

c.

$1.50

d.

$5.60

Expert Answer

Anonymous
answered this
SOLUTION:

Units
Reconciliation

Units to account for:

Beginning WIP 6000

Units started this period 14000

Total Units to account for 20000

Total Units accounted

for:

Completed & Transferred out 18000

Ending WIP 2000

Total Units accounted for 20000

EUP - FIFO Units % EUP % EUP

Material Material Conversion Conversion

Units of
BEGINNING 6000 0% 0 75% 4500
WIP

Units
STARTED & 12000 100% 12000 100% 12000
COMPLETED

Units of
2000 100% 2000 75% 1500
ENDING WIP

Equivalent
Units of 14000 18000
Production

COST per
Material Conversion Total
EUP

Cost of
Beginning 29400 3600
WIP

Cost
incurred
56000 28800
during the
period

Total Costs 85400 32400

Equivalent
units of 14000 18000
production

Cost per
6.10 1.80 7.90
EUP
 0 Comments

Was this answer helpful? 0

3
Up next for you in Accounting

ABC Sports is a
17. Which of the following

manufacturer of
is an example of

sportswear. It produces
spoilage? A) short lengths

all of its products in one

from woodworking ope…
department. The
See more quest
information for the
for subjects you s
current month is as

follows: Beginning work

See answer See answer

COMPANY

LEGAL & POLICIES

CHEGG PRODUCTS AND SERVICES

CHEGG NETWORK

CUSTOMER SERVICE

© 2003-2021 Chegg Inc. All rights reserved.