CloverSweet Inc. manufactures a product that goes through two departments prior to completion. The information shown in the table below is available about work in the first department, the Mixing Department, during June:

Percentage Completed
Units Materials Conversion
Work in process, beginning 64,000 60% 25%
Started into production 427,000
Completed and transferred out 363,000
Work in process, ending 128,000 50% 30%


Materials Conversion
Work in process, beginning $24,500 $22,000
Cost added during June $477,000 $124,000

Required:
Assume that the company uses the FIFO method.


1. Determine the equivalent units for June for the first process.
Equivalent Units of Production: Materials Conversion

2. Compute the costs per equivalent unit for June for the first process.

Cost per equivalent unit: Materials Conversion


3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in June.
Materials Conversion Total
Cost of ending work in process inventory
Cost of units transferred out


4. Prepare a report that reconciles the total costs assigned to the ending work in process inventory and the units transferred out with the costs in beginning inventory and costs added during the period.

Cost Reconciliation
Costs to be accounted for:
Cost of beginning work in process inventory
Costs added to production during the period
Total cost to be accounted for
Costs accounted for as follows:
Cost of ending work in process inventory
Costs of units transferred out
Total cost accounted for