Question
A department uses the FIFO method of process costing. All direct materials are added when units are 50% complete with respect to conversion costs. This
A department uses the FIFO method of process costing. All direct materials are added when units are 50% complete with respect to conversion costs. This department has the following data for this month.
12 units in beginning WIP (49% complete with respect to conversion costs).
943 units started
17 units in ending WIP (83% complete with respect to conversion costs).
$546 Beginning WIP direct material costs
$553 Beginning WIP conversion costs
$6,644 Current period direct material costs
$6,106 Current period conversion costs
What is the department's direct material cost for units completed and transferred out for this month (round final answer to nearest cent if necessary)?
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