Answer Happy

Cost Information and FIFO Gunnison Company had the following equivalent units schedule and cost information for its Sewing Department for the month of December: Direct Materials Conversion Costs 45,000 45,000 Units started and completed Add: Units in beginning work in process x Percentage complete: 7,000 x 0% direct materials 7,000 x 50% conversion Costs Add: Units in ending work in process x Percentage complete: 10,000 x 100% direct materials 10,000 x 35% conversion Costs Equivalent units of output Costs: Work in process, December 11 Direct Material Conversion Costs Total work in process Current costs: Direct Material Conversion Costs Total current costs Required: 10,000 55,000 3,500 3,500 52,000 $77,000 17,500 $94,500 $660,000 312,000 $972,000 Ⓒ
Conversion Costs Total work in process Current costs: Direct Material Conversion Costs Total current costs Required: 1. Calculate the unit cost for December, using the FIFO method. per equivalent unit $77,000 17,500 $94,500 $660,000 312,000 $972,000 2. Calculate the cost of goods transferred out, calculate the cost of EWIP, and reconcile the costs assigned with the costs to account for. Cost of goods transferred out Cost of EWIP Cost to account for: BWIP Current (December) Total 3. What if you were asked for the unit cost from the month of November? Calculate November's unit cost. per equivalent unit