Lead Inc. processes a single type of lead pipe. For the current period the following information is given: Units Material Costs Beginning Inventory 5,000 $ 125,000 Conversion Costs $ 40,275 Started During the Current Period 20,000 $ 450,000 $ 232,875 Ending Inventory 2,500 All materials are added at the beginning of the production process. The beginning inventory was 60% complete as to conversion, while the ending inventory was 30% completed for conversion purposes. Calculate Lead's physical flow of units, equivalent units, cost per equivalent unit and assign costs to the inventory categories of Finished Goods and Ending Work-in-Process using the FIFO method of processing costing.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 2EA: A company started a new product, and in the first month started 100,000 units. The ending work in...
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Lead Inc. processes a single type of lead pipe. For the current period the following
information is given:
Units
Material Costs
Beginning Inventory
5,000
$ 125,000
Conversion Costs
$ 40,275
Started During the Current Period
20,000
$ 450,000
$ 232,875
Ending Inventory
2,500
All materials are added at the beginning of the production process. The beginning inventory was 60%
complete as to conversion, while the ending inventory was 30% completed for conversion purposes.
Calculate Lead's physical flow of units, equivalent units, cost per equivalent unit and assign costs to the
inventory categories of Finished Goods and Ending Work-in-Process using the FIFO method of processing
costing.
Transcribed Image Text:Lead Inc. processes a single type of lead pipe. For the current period the following information is given: Units Material Costs Beginning Inventory 5,000 $ 125,000 Conversion Costs $ 40,275 Started During the Current Period 20,000 $ 450,000 $ 232,875 Ending Inventory 2,500 All materials are added at the beginning of the production process. The beginning inventory was 60% complete as to conversion, while the ending inventory was 30% completed for conversion purposes. Calculate Lead's physical flow of units, equivalent units, cost per equivalent unit and assign costs to the inventory categories of Finished Goods and Ending Work-in-Process using the FIFO method of processing costing.
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