Use the information from Review 6-2 to answer the following questions:

a. Compute the unit costs for October for direct material and for conversion under the FIFO method.

b. Determine the cost transferred out for October using the FIFO method. Round your final answers to the nearest whole dollar.

c. Determine the cost of October 31 ending inventory using the FIFO method. Round your final answers to the nearest whole dollar.

Data From Review 6-2 :-

Lathrop Inc. mass produces filters for drinking water. The following cost information is available for October:

On October 1, the company had 1,200 units in process, which were 80 percent complete as to materials and 20 percent complete as to conversion. Lathrop started 12,000 units into process during October and had 800 units still in process on October 31. The ending WIP units were 40 percent complete as to materials and 30 percent complete as to conversion.

Transcribed Image Text:

Beginning inventory direct material cost.. Beginning inventory conversion cost. Direct material issued during October Direct labor incurred during October Overhead applied during October $ 5,800 2,200 88,000 18,000 15,000