Pix Company has the following production data for March: no beginning work in process, units started and completed 26,500, and ending work in process 3,200 units that are 100% complete for materials and 40% complete for conversion costs. Pix uses the FIFO method to compute equivalent units. If unit materials cost is $6 and unit conversion cost is $11. The total costs to be assigned are $483,780, prepare the cost section of the production cost report for Pix Company using the FIFO approach.

Material Equivalent Units= 29,700

Conversion Costs Equivalent Units= 27,780

Explanation:

                                                Units          % of Completion   Equivalent Units

                                                                   Mat.     C.C              Mat.     C.C

Units started and completed 26,500,    100%     100%        26,500  26,500

Ending work in process 3,200 units     100%  40%             3200      1280

Total Equivalent Units                                                      29,700     27,780

Pix uses the FIFO method to compute equivalent units. If unit materials cost is $6 and unit conversion cost is $11. The total costs to be assigned are $483,780,

Materials =  $6* 29,700=   $ 178,200

Conversion Costs = $ 11 * 27,780= $ 305,580

Total costs =                                   $ 483,780

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