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Question - Funtime Inc. makes small toys in a one department production process. Plastic is added at the beginning of the process, all other materials are considered indirect. The following information is available relative to September 2010 production.
Beginning WIP Inventory: 15000 toys (60% complete as to labor: 75% complete as to overhead)
Started into production: plastic for 620,000 toys
Ending WIP Inventory: 25,400 toys (35% complete as to labor; 60% complete as to overhead)
a. Compute the EUP for direct material, direct labor, and overhead using weighted average process costing.
b. Compute the EUP for direct material, direct labor, and overhead using FIFO process costing.
c. Reconcile the calculations in parts (a) and (b).
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