Scribd
Upload
580 views

Competency Exam - ACC123

The document describes Leslie Company's production and cost data for January using the FIFO costing method. It details the beginning and ending work-in-process inventory, units placed in and completed production. It then calculates the equivalent units for direct materials and conversion costs considering the percentage complete of work-in-process inventory. Finally, it applies the costs per equivalent unit to value the beginning and ending inventory and units started and completed.

Uploaded by

Ivan Pacificar Biore
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
580 views

Competency Exam - ACC123

The document describes Leslie Company's production and cost data for January using the FIFO costing method. It details the beginning and ending work-in-process inventory, units placed in and completed production. It then calculates the equivalent units for direct materials and conversion costs considering the percentage complete of work-in-process inventory. Finally, it applies the costs per equivalent unit to value the beginning and ending inventory and units started and completed.

Uploaded by

Ivan Pacificar Biore
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

FIFO costing method

Leslie Company Production and Cost Data: January

Production:
Beginning work in process inventory, ¼% complete 6,000 items
Units placed in production 14,000 units
Units completed 17,000 units
Ending work in process inventory, 50% complete 3,000 items

Costs:
Beginning work in process 36,000

Current Costs:
Direct Material Costs 42,000
Conversion Costs 68,000

Physical Flow Schedule

Units to account for:


Units, beginning work in process 6,000
Units placed in production 14,000
Total units to account for 20,000
Units accounted for:
Units completed 17,000
Units, ending work in process 3,000
Total units accounted for 20,000
Equivalent Units of production: FIFO Method

Direct Material Conversion Costs


Units started and completed 11,000 11,000
Add: Units in beg. Work in process
X Percentage to complete:
6,000 x 0% direct materials -
6,000 x 75% conversion cost 4,500
Add: Units in ending work in process
X Percentage complete:
3,000 x 100% direct materials 3,000
3,000 x 50% conversion cost 1,500
Equivalent units of output 14,000 17,000
Leslie Company
Production Report
For January

Unit Information

Units to account for: Units accounted for


Units, beginning work in Units completed 17,000
process 6,000 Units, ending work in
Units started 14,000 process 3,000
Total units to account for 20,000 Total units accounted for 20,000

Equivalent Units
Direct Materials Conversion Costs
Units started and completed 11,000 11,000
Units, beginning work in process - 4,500
Units, ending work in process 3,000 1,500
Equivalent units of output 14,000 17,000

Cost Information
Costs to account for:
Direct materials Conversion Cost Total
Beginning work in process P36,000
Incurred during the period P42,000 P68,000 P110,000
Total cost to account for P42,000 P68,000 P146,000
Cost per equivalent unit:
Current costs P42,000 P68,000
Divided by equivalent units 14,000 17,000
Cost per equivalent unit P3 P4 P7

Costs accounted for:


Units transferred out:
Units, beginning work in process
From prior period P36,000
From current period (P4 x 4,500) 18,000
Units started and completed (P7 x 11,000) 77,000 131,000
End work in process:
Direct Materials (3,000 x P3) 9,000
Conversion Costs (1,500 x P4) 6,000 15,000
Total cost accounted for P146,000

You might also like