Fresh Mint Co. produces packs of mint-flavored chewing gum that are sold to businesses in boxes that contain 50 packs each. Business has been steady, and Fresh Mint is gearing up to launch a new campaign with the hopes of increasing sales by at least 5% within the next quarter. They would like to use the current quarter to evaluate their Process Costing Costs and are going to look into both the First-In, First-Out (FIFO) and Weighted-Average methods. They began the quarter with the following costs: Direct Materials (DM), $3,400; and Conversion Costs (CC), $5,687, and during the quarter they added the following costs: DM - $18,977; and CC - $27,654. How much cost should they include in their calculation for equivalent unit costs for Direct Materials under both the FIFO and Weighted-Average methods?

Question

Quizplus · Accepted Answer

The Answer of Fresh Mint Co. produces packs of mint-flavored chewing gum that are sold to businesses in boxes that contain 50 packs each. Business has been steady, and Fresh Mint is gearing up to launch a new campaign with the hopes of increasing sales by at least 5% within the next quarter. They would like to use the current quarter to evaluate their Process Costing Costs and are going to look into both the First-In, First-Out (FIFO) and Weighted-Average methods. They began the quarter with the following costs: Direct Materials (DM), $3,400; and Conversion Costs (CC), $5,687, and during the quarter they added the following costs: DM - $18,977; and CC - $27,654. How much cost should they include in their calculation for equivalent unit costs for Direct Materials under both the FIFO and Weighted-Average methods?