Calculate the amounts for conversion costs using fifo method

Reference no: EM131989276

Problem

Taxes R Us (TRU), an income tax preparation firm, uses the FIFO method of process costing for the monthly reports. TRU has no materials cost in the preparation of the returns. The following shows its March information:

Returns in process, March 1 (30% complete) 220
Returns started in March 2,200
Returns in process, March 31 (90% complete) 440
Labor and overhead costs for returns in process, March 1 $ 5,500
Labor and overhead costs incurred in March $ 254,100

Required:

Calculate the amounts for conversion costs using the FIFO method:
1. Equivalent Units
2. Cost per equivalent Units
3. Cost of completed tax returns for month of March
4. Cost of tax returns in process as of March 31.

Reference no: EM131989276

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