Try It! 17-3

Consider Stanton Processing Company Again. With the same information for 2017 as provided in Try It! 17-2, redo the problem assuming Stanton uses FIFO costing instead.

March 1   (3000 Units) [40%|10%]
March 31 (2000 Units) [80%|40%]

The company completed 30,000 units during March. Manufacturing costs incurred during March were direct materials costs of $176,320 and conversion costs of $312,625. Inventory at March 1 was carried at a cost of $16,155 (direct materials, $5,380 and conversion costs, $10,775).

Physical Units:
The 3,000 Units in the Beginning WIP Inventory are Completed and Transferred Out
27,000 Units Started this month are Completed and Transferred Out
2,000 Units Started this month end up incomplete and in the WIP Inventory

Equivalent Units:
From the Beginning WIP Inventory, the Equivalent Units of work that needs to be done is:
3,000 Units [60%|90%]
[1,800 | 2,700]
Units Started and Completed this month:
27,000 Units [100%|100%]
[27,000 | 27,000]
Units Started and end up in Ending WIP:
2,000 Units [80%|40%]
[1,600 | 800]
Total:
[30,400 | 30,500]

Total Costs:
Started: [$176,000 | $312,625]
WIP:     [    $5,380 |   $10,775]
Total:    [$181,380 | $323,400]

Cost/Equivalent Units:
[$5.97 | $10.60]

Allocate Costs
Finish WIP: [$10,746 | $28,620]
Started and Completed: [$161,190 | $286,200]
Started and WIP: [$9,552 | $8,480]