Calculate the equivalent unit cost for direct material

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Reference no: EM132797208

The production manager of Nature's Food presented the following production data. He stated that, beginning inventory of work-in-progress (WIP) is 100,000 protein bars which are 60% complete. Beginning WIP raw material inventory costs are $400,000. While, beginning WIP inventory of conversion costs are $990,000.

He further stated that, all raw materials for the protein bars are added at the beginning of production process. Conversion takes place continuously throughout the process. However, during the period, 250,000 protein bars were started; and raw materials added during the period cost $1,175,000. Conversion costs for the period are $5,538,000. Ending WIP inventory is 50,000 protein bars which are 40% complete.

Problem a) Calculate the equivalent unit cost for direct material and conversion cost and value the outputs using the Weighted Average

Problem b) Calculate the equivalent unit cost for direct material and conversion cost and value the outputs using the First in First out (FIFO) Method.

Reference no: EM132797208

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