Question
FIFO Method, Valuation of Goods Transferred Out and Ending Work in Process K-Briggs Company uses the FIFO method to account for the costs of production.
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FIFO Method, Valuation of Goods Transferred Out and Ending Work in Process
K-Briggs Company uses the FIFO method to account for the costs of production. For Crushing, the first processing department, the following equivalent units schedule has been prepared:
Direct Materials Conversion Costs Units started and completed 28,000 28,000 Units, beginning work in process: 10,000 0% 10,000 40% 4,000 Units, ending work in process: 6,000 100% 6,000 6,000 75% 4,500 Equivalent units of output 34,000 36,500 The cost per equivalent unit for the period was as follows:
Direct materials $2.00 Conversion costs 6.00 Total $8.00 The cost of beginning work in process was direct materials, $40,000; conversion costs, $30,000.
Required:
1. Determine the cost of ending work in process. $
Determine the cost of goods transferred out. $
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2. Prepare a physical flow schedule.
K-Briggs Company Physical Flow Schedule Units to account for: - Started and completed
- Units, beginning work in process
- Units completed
- Units, ending work in process
- Started and completed
- Units completed
- Units started
- Units, ending work in process
Total units to account for Units accounted for: Units completed: - Started and completed
- Units completed
- Units started
- Units completed
- Units, beginning work in process
- Units started
- Units completed
- Units, ending work in process
- Units started
Total units accounted for
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