Finding Equivalent Units and Total Production Costs
I need help solving questions for the following scenario:
Surf Products Company, Inc. uses an automated process to clean and polish its souvenir items. For March, the company has the following activities:
Beginning WIP Inventory: 3,000 units; 1/3 complete
Units Placed in Production: 12,000 units
Units Completed and Transferred: 9,000 units
Ending WIP Inventory: 6,000 units; 1/2 complete
Cost of Beginning WIP: $2,500
Direct Materials Costs, Current: $9,000
Conversion Costs, Current: $7,700
Direct Materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process. The company uses FIFO to calculate its costs under process costing.
– What are the equivalent units for direct materials and conversion costs, respectively in March?
– How much of the total production costs were assigned to those units that were completed and transferred out?
– The total production costs that were assigned to those units that were completed and transferred out, how much can be attributed to those units from beginning work in process and how much can be attributed to those units that were started and competed during the period?