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Question
Bimrose Manufacturing uses process cost accounting and FIFO for its three-department operation. Direct materials are added at the beginning of the Department 1 process, at the halfway point of the Department 2 process, and at the beginning of the Department 3 process. Direct labor and overhead are incurred evenly throughout all departments' processes. The following information is available for September:
| Department | ||||||
| 1 | 2 | 3 | ||||
| Beginning in process inventory: | ||||||
| Units | 2,500 | 5,500 | 1,500 | |||
| Percent complete | 60% | 40% | 80% | |||
| Ending goods in process inventory: | ||||||
| Units | 3,500 | 4,200 | 6,500 | |||
| Percent complete | 30% | 60% | 70% | |||
| Units completed | 14,500 | 15,800 | 10,800 | |||
(a) Determine the number of units started and completed in Department 1, and the number of units transferred into and completed in Departments 2 and 3.
(b) Determine the equivalent units of production for direct materials, direct labor, and overhead for each department.
Answer
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