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Company X uses the FIFO method and has two departments, Department 1 and Departm...
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Company X uses the FIFO method and has two departments, Department 1 and Department 2. The following information is available for Department 1, that is the first stage of the manufacturing process of the company. Direct materials are added when the process is 20% complete and conversion costs are added homogeneously in the process.
BWIP for this department was 80%
complete in what concerns conversion costs
- EWIP was 58% complete
|
Units
|
Conversion Costs
|
WIP at March 1
|
3000000
|
$ 2500000
|
Units started in March
|
15000000
|
|
Units completed and transferred out
|
10000000
|
|
Costs incurred during March
|
|
$ 24480000
|
How much of the conversion costs were assigned to the EWIP units, assuming no spoilage?