Saturn Corporation
Begining invent ouy (30\% complete as to Material B and $ 60 \% $ complete for 700 units
conversion

Started this cycle 2,000 units
Ending inventory (50\% complete as to Material B and $ 80 \% $ complete for conversion) 500 units

$\begin{array}{lc}
\text { Beginuing inventory costs: } & \
\text { Material A } &\$ 14,270 \
\text { Material B } &5,950 \
\text { Conversion } & 5,640 \
\text { Current Period costs: } & \
\text { Material A } & \$ 40,000\
\text { Material B } &70,000 \
\text { Conversion } & 98,100
\end{array}$

Material A is added at the start of production,while Material B is added uniformly throughout the process.
Refer to Saturn Corporation Assuming a FIFO method of process costing,compute the average cost per EUP for Material

Question

Saturn Corporation
Begining invent ouy (30\% complete as to Material B and $ 60 \% $ complete for                                     700                                   units
conversion

Started this cycle                                                                                                                                     2,000                               units
Ending inventory (50\% complete as to Material B and $ 80 \% $ complete for conversion)                       500                                   units

$\begin{array}{lc}
\text { Beginuing inventory costs: } &  \
\text { Material A } &\$ 14,270 \
\text { Material B } &5,950  \
\text { Conversion } & 5,640  \
\text { Current Period costs: } &  \
\text { Material A } & \$ 40,000\
\text { Material B } &70,000  \
\text { Conversion } & 98,100
\end{array}$

Material A is added at the start of production,while Material B is added uniformly throughout the process.
Refer to Saturn Corporation Assuming a FIFO method of process costing,compute the average cost per EUP for Material

Quizplus · Accepted Answer

Material A is added at the beginning of the production process, so all units started and completed during the period would have received Material A. Under the FIFO method, we first need to calculate the equivalent units of production (EUP) for Material A, considering only the units started and completed during the current period plus the completion of beginning inventory. Since Material A is added at the start, the EUP for Material A would be the total units completed (which is the beginning inventory plus started minus ending inventory) since all these units would have received Material A. The calculation for the average cost per EUP for Material A involves dividing the total cost of Material A by the EUP for Material A. Given the information, the correct calculation leads to the average cost per EUP for Material A being $20.00, which matches option C.

Saturn Corporation Begining Invent Ouy (30\% Complete as to Material 60% 60 \% 60%

Saturn Corporation
Begining Invent Ouy (30\% Complete as to Material $60 \%$