Bimrose Manufacturing Uses Process Cost Accounting and FIFO for Its

Essay

Bimrose Manufacturing uses process cost accounting and FIFO for its three-department operation. Direct materials are added at the beginning of the Department 1 process, at the halfway point of the Department 2 process, and at the beginning of the Department 3 process. Direct labor and overhead are incurred evenly throughout all departments' processes. The following information is available for September:

(a) Determine the number of units started and completed in Department 1, and the number of units transferred into and completed in Departments 2 and 3.
(b) Determine the equivalent units of production for direct materials, direct labor, and overhead for each department.