FIFO method

Dana Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company’s first processing department for a recent month. Work in process beginning: Units in process Percent complete with respect to materials Percent complete with respect to conversion Costs in the beginning inventory: Materials cost Conversion cost 700 50% 10% $595 $2,093 Units started into production during the month Units completed and transferred out 14,000 14,600 Costs added to production during the month: Materials cost Conversion cost $21,465 $440,618 Work in process,ending: Units in process Percent complete with respect to materials Percent complete with respect to conversion 100 60% 60% Required: Using the FIFO method: a. Determine the equivalent units of production for materials and conversion costs. Equivalent Units of Production Materials Conversion b. Determine the cost per equivalent unit for materials and conversion costs. (Do not round your intermediate calculations. Round your answer to 2 decimal places. Omit the “$” in your response.) Materials Conversion Cost per Equivalent Unit $ $ c. Determine the cost of ending work in process inventory. (Do not round intermediate calculations. Omit the “$” sign in your response.) Cost of ending WIP $ d. Determine the cost of units transferred out of the department during the month. (Do not round intermediate calculations. Omit the “$” sign in your response.) Cost of units transferred out $