funtime inc makes small toys in a one department production process 491991
WA and FIFO EUP
Funtime Inc. makes small toys in a one-department production process. Plastic is added at the beginning of the process, all other materials are considered indirect.
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The following information is available relative to September 2010 production activities: Beginning WIP Inventory: 15,000 toys (60% complete as to labor, 75% complete as to overhead).
Started into production: plastic for 620,000 toys. Ending WIP Inventory: 25,400 toys (35% complete as to labor, 60% complete as to overhead).
a. Compute the EUP for direct material, direct labor, and overhead using weighted average process costing.
b. Compute the EUP for direct material, direct labor, and overhead using FIFO process costing.
c. Reconcile the calculations in parts (a) and (b).
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