Bretlind watch manufacturers use the FIFO method of process costing.The following information was available for the current year:
$\begin{array}{lcc}
& \text {Number } & \text {Production } \
&\underline{ \text {of units } } &\underline{\text { costs }}\
\text { Beginning work-in-process ( $20 \% $ complete) } &60000&\$200000\
\text { Units started this period (current period production work) } &400000&1100000\
\text { Ending work-in-process ( $ 40 \% $ complete) } &40000\
\end{array}$

Required:
A. How many total equivalent units were completed during the year?
B. What was the cost per equivalent unit?
C. What is the cost allocated to the ending work-in-pracess units?
D. What is cost of goods manufactured for the year?

Question

Bretlind watch manufacturers use the FIFO method of process costing.The following information was available for the current year:
 $\begin{array}{lcc}
& \text {Number } & \text {Production   } \
&\underline{ \text {of units  } } &\underline{\text { costs }}\
  \text { Beginning work-in-process ( $20 \% $ complete) } &60000&\$200000\
 \text { Units started this period (current period production work) } &400000&1100000\
 \text {  Ending work-in-process ( $ 40 \% $ complete) } &40000\
\end{array}$

Required:
 A. How many total equivalent units were completed during the year?
B. What was the cost per equivalent unit?
C. What is the cost allocated to the ending work-in-pracess units?
D. What is cost of goods manufactured for the year?

Quizplus · Accepted Answer

The Answer of Bretlind watch manufacturers use the FIFO method of process costing.The following information was available for the current year:
 $\begin{array}{lcc}
& \text {Number } & \text {Production   } \
&\underline{ \text {of units  } } &\underline{\text { costs }}\
  \text { Beginning work-in-process ( $20 \% $ complete) } &60000&\$200000\
 \text { Units started this period (current period production work) } &400000&1100000\
 \text {  Ending work-in-process ( $ 40 \% $ complete) } &40000\
\end{array}$

Required:
 A. How many total equivalent units were completed during the year?
B. What was the cost per equivalent unit?
C. What is the cost allocated to the ending work-in-pracess units?
D. What is cost of goods manufactured for the year?

Bretlind Watch Manufacturers Use the FIFO Method of Process Costing