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Question - BTS Products Company uses an automated process to manufacture its pet replica products. For June, the company had the following activities:
Beginning work in process inventory
4,500 items, 1/4 complete
Units placed in production
15,000 units
Units completed
17,500 units
Ending work in process inventory
2,000 items, 3/4 complete
Cost of beginning work in process
P5,250
Direct material costs, current
P16,500
Conversion costs, current
P23,945
The company uses FIFO Method
Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process.
Required -
1. Calculate the Equivalent Units of Production - Conversion Cost.
2. Calculate for the total material cost per unit.
3. Calculate for the total manufacturing cost per unit.
4. How much is the total cost for Started and Completed.
5. How much is the total cost for Work in Process, Ending Inventory.
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