Pix Company has the following production data for March: no beginning work in process, units started and completed 26,500, and ending work in process 3,200 units that are 100% complete for materials and 40% complete for conversion costs. Pix uses the FIFO method to compute equivalent units. If unit materials cost is $6 and unit conversion cost is $11. The total costs to be assigned are $483,780, prepare the cost section of the production cost report for Pix Company using the FIFO approach.

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Business

Tori Horton

5 December, 19:13

Pix Company has the following production data for March: no beginning work in process, units started and completed 26,500, and ending work in process 3,200 units that are 100% complete for materials and 40% complete for conversion costs. Pix uses the FIFO method to compute equivalent units. If unit materials cost is $6 and unit conversion cost is $11. The total costs to be assigned are $483,780, prepare the cost section of the production cost report for Pix Company using the FIFO approach.

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Kristin Malone · Answer 1

Material Equivalent Units = 29,700

Conversion Costs Equivalent Units = 27,780

Explanation:

Units % of Completion Equivalent Units

Mat. C. C Mat. C. C

Units started and completed 26,500, 100% 100% 26,500 26,500

Ending work in process 3,200 units 100% 40% 3200 1280

Total Equivalent Units 29,700 27,780

Pix uses the FIFO method to compute equivalent units. If unit materials cost is $6 and unit conversion cost is $11. The total costs to be assigned are $483,780,

Materials = $6 * 29,700 = $ 178,200

Conversion Costs = $ 11 * 27,780 = $ 305,580

Total costs = $ 483,780