Demere Manufacturing Corporation produces chemical products using a continual process. Demere uses the FIFO method for process costing. All manufacturing is accomplished in one department. Materials are added at the beginning of the process while conversion costs are incurred evenly throughout the process.
The work in process inventory at the beginning of February 20X5 consisted of 4,000 gallons that were 75% complete. The work in process at the end of February consisted of 5,000 gallons that were 60% complete. During February 70,000 gallons were transferred to finished goods.
The beginning inventory contained $32,615 of materials and $21,264 of conversion costs. Product costs incurred during February consisted of $555,220 of materials and $389,200 of conversion costs.
Calculate equivalent units, cost per equivalent unit, and prepare the product cost report for Demere Manufacturing Corporation for the month of February.

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The Answer of Demere Manufacturing Corporation produces chemical products using a continual process. Demere uses the FIFO method for process costing. All manufacturing is accomplished in one department. Materials are added at the beginning of the process while conversion costs are incurred evenly throughout the process.
The work in process inventory at the beginning of February 20X5 consisted of 4,000 gallons that were 75% complete. The work in process at the end of February consisted of 5,000 gallons that were 60% complete. During February 70,000 gallons were transferred to finished goods.
The beginning inventory contained $32,615 of materials and $21,264 of conversion costs. Product costs incurred during February consisted of $555,220 of materials and $389,200 of conversion costs.
Calculate equivalent units, cost per equivalent unit, and prepare the product cost report for Demere Manufacturing Corporation for the month of February.

Demere Manufacturing Corporation Produces Chemical Products Using a Continual Process