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Gulf Furniture uses a process cost system to account for its chair factory. Beginning inventory consisted of 5,000 units(100\% complete as to material, 55% complete as to labor) with a cost of $124,800 materials and $104,500 conversion. 58,000 units were started into production during the month with material costs of \$1,537,0 and \$2,124,375 of conversion costs. The ending inventory of 6,000 chairs was 100% complete as to materials and 40 % complete as to labor. Gulf Furniture uses first-in, first-out (FIFO) costing. Required: a. Compute the equivalent units of production for each input . b . Compute the cost per unit . c. Compute the cost transferred out to finished goods .

Gulf Furniture uses a process cost system to account for its chair factory. Beginning inventory consisted of 5,000 units(100\% complete as to material, 55% complete as to labor) with a cost of $124,800 materials and $104,500 conversion. 58,000 units were started into production during the month with material costs of \$1,537,0 and \$2,124,375 of conversion costs. The ending inventory of 6,000 chairs was 100% complete as to materials and 40 % complete as to labor. Gulf Furniture uses first-in, first-out (FIFO) costing. Required: a. Compute the equivalent units of production for each input . b . Compute the cost per unit . c. Compute the cost transferred out to finished goods .

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products
Section: Chapter Questions
Problem 9P: Clearwater Candy Co. had a cost per equivalent pound for the month of 4.56 for materials, 1.75 for...
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Gulf Furniture uses a process cost system to account for its chair factory. Beginning inventory consisted of 5,000 units(100\% complete as to material, 55% complete as to labor) with a cost of $124,800 materials and $104,500 conversion. 58,000 units were started into production during the month with material costs of \$1,537,0 and \$2,124,375 of conversion costs. The ending inventory of 6,000 chairs was 100% complete as to materials and 40 % complete as to labor. Gulf Furniture uses first-in, first-out (FIFO) costing. Required:

a. Compute the equivalent units of production for each input .

b . Compute the cost per unit .

c. Compute the cost transferred out to finished goods .
d . Compute the ending work - in- process inventory balance .

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