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Home / Questions / Pacific Ink had beginning work-in-process inventory of $985,960on October 1. Of this amoun...

Pacific Ink had beginning work-in-process inventory of $985,960on October 1. Of this amount, $412,500 was the cost of directmaterials and $573,460 was the cost of conversion.The 60,000 unitsin the

Pacific Ink had beginning work-in-process inventory of $985,960on October 1. Of this amount, $412,500 was the cost of directmaterials and $573,460 was the cost of conversion.The 60,000 unitsin the beginning inventory were 30 percent complete with respect toboth direct materials and conversion costs. During October, 126,000units were transferred out and 42,000 remained in endinginventory.The units in ending inventory were 80 percent completewith respect to direct materials and 40 percent complete withrespect to conversion costs. Costs incurred during the periodamounted to $3,186,000 for direct materials and $3,943,680 forconversion. (1) Compute the equivalent units for the materials andconversion cost calculations. (2) Compute the cost per equivalentunit for direct materials and for conversion costs using the FIFOmethod. (Round your answers to 2 decimal places.)

Jun 06 2021 View more View Less

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