Pix company has the following production data for march: no beginning work in process, units started and completed 31,000, and ending work in process 4,100 units that are 100% complete for materials and 40% complete for conversion costs. pix uses the fifo method to compute equivalent units. if unit materials cost is $4 and unit conversion cost is $13. the total costs to be assigned are $564,720, prepare the cost section of the production cost report for pix company using the fifo approach.

unit beggining WIP                         0

Units started and completed 31,000

Ending inventory                       4,100

Total physical units                 35,100

Equivalent units (materials)

Units started and completed 31,000

WIP materials (4,100 x 100%)    4,100

Total units accounted for        35,100

Equivalent units (conversion)

Units started and completed 31,000

WIP materials (4,100 x 40%)     1,640

Total units accounted for        32.640‬

Cost Incurred during March:

35, 100 x 4  =     140,400

32,640 x 13 =  1,044,480

Total cost        1, 184,880

Cost assigned to units transferred out

31,000 x (4 + 13) = 527,000‬

Cost of WIP

4,100 x  4 = 16.400‬

1,640 x 13 = 21,320‬

Total            37,720‬

Explanation:

We need to do the count of physical units

we need to calcualte the equivalent units:

transferred + ending x completion percentage

then the cost incurred

and allocate cost to finished goods and the ending WIP based on the equivalent units of materials and conversion

the answer is risk management planning

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