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Question: reutter inc makes a single product and uses the fifo...

Question details

Reutter, Inc. makes a single product and uses the FIFO method of process costing. The company’s product goes through two processing departments – Etching and Wiring – which completes the process. This problem focuses on the Writing department which received the ‘etched’ products and then completes them by adding appropriate writing. In Wiring, the direct materials are placed into production when the process is 35% complete. Conversion costs are incurred evenly throughout the process. The relevant information for April is below:

Beginning work in process inventory

10,000 items, 30% complete as to conversion

Units started in April

170,000 units

Ending work in process inventory

20,000 items, 40% complete as to conversion

Transferred-In     Materials          Conversion

Cost of beginning work in process

$    7,000                 $ 0                    $   4,900

Current costs in April

$187,000                 $153,000           $ 244,200

REQUIRED:

Complete and submit the following table including the T-Accounts. You can create your own ‘new’ file or use this WORD document. Rather than ‘typing in the numbers’, you may want to write them in and send a scanned pdf file. The Drop Box does not accept JPEG or pictures.

Reutter, Inc.

Flow of production

Physical Units

Transferred-In

Direct Materials

Conversion

WIP, beginning

Transferred in

   To account for

Units completed & Transf

  • Beg WIP
  • Started & Completed

WIP, ending

   Accounted for

Costs

Totals

Transferred-In

Direct Materials

Conversion

WIP, beginning

Costs added during period

Total costs to account for

Divided by equivalent units

Assignment of costs

Completed units (completed and transferred)

  • Beg WIP Costs
  • Finish up Beg WIP units

  • Started & Completed

WIP, ending

Costs accounted for

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