The following information is based on the Drying and Packaging Department of Cape Elizabeth Potato Chips. Conversion costs of beginning inventory were 60% complete and ending inventory was 30% complete. Management has recently been concerned with the rising costs of factory labor in a tight labor market. Other information on this process:

The company uses the FIFO method.
Required:
a) What was the conversion cost of work-in-process in the Drying and Packaging department at August
31?
b) What were the conversion costs per equivalent-unit produced last period and this period?
c) What were the total conversion costs transferred out?
d) Comment on the information provided by your calculations.

Question

The following information is based on the Drying and Packaging Department of Cape Elizabeth Potato Chips. Conversion costs of beginning inventory were 60% complete and ending inventory was 30% complete. Management has recently been concerned with the rising costs of factory labor in a tight labor market. Other information on this process:
 
The company uses the FIFO method.
Required:  
a) What was the conversion cost of work-in-process in the Drying and Packaging department at August
31?
b) What were the conversion costs per equivalent-unit produced last period and this period?
c) What were the total conversion costs transferred out?
d) Comment on the information provided by your calculations.

Quizplus · Accepted Answer

The Answer of The following information is based on the Drying and Packaging Department of Cape Elizabeth Potato Chips. Conversion costs of beginning inventory were 60% complete and ending inventory was 30% complete. Management has recently been concerned with the rising costs of factory labor in a tight labor market. Other information on this process:
 
The company uses the FIFO method.
Required:  
a) What was the conversion cost of work-in-process in the Drying and Packaging department at August
31?
b) What were the conversion costs per equivalent-unit produced last period and this period?
c) What were the total conversion costs transferred out?
d) Comment on the information provided by your calculations.

The Following Information Is Based on the Drying and Packaging