Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger

Exercise 65

( Appendix 6A ) First-In, First-Out Method; Journal Entries
Refer to Problem 6-55.
Required :
1. Using the FIFO method, prepare the following for Department A: (a) a physical flow schedule, (b) an equivalent unit calculation, (c) calculation of unit costs ( Note : Round to two decimal places), (d) cost of EWIP and cost of goods transferred out, and (e) a cost reconciliation.
2. CONCEPTUAL CONNECTION Prepare journal entries that show the flow of manufacturing costs for Department A. Use a conversion cost control account for conversion costs. Many firms are now combining direct labor and overhead costs into one category. They are not tracking direct labor separately. Offer some reasons for this practice.