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.
19 units in beginning WIP (25% complete with respect to conversion costs).
690 units started
20 units in ending WIP (29% complete with respect to conversion costs).
$564 Beginning WIP direct material costs
$458 Beginning WIP conversion costs
$6,398 Current period direct material costs
$6,772 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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