Figure 5-9

The following information is available for Department Z for the month of July:

Units Cost

Work in progress, July 1 (70% complete) 5,000

Direct materials 6,000

Direct labour 3,000

Manufacturing overhead __4,000

Total work in progress, July 1 13,000

Started in production during July 20,000

Costs added:

Direct materials 18,000

Direct labour 8,000

Manufacturing overhead _10,000

Total costs added during July 36,000

Work in progress, July 31, (80% complete) 2,000

Materials are added at the beginning of the process. (Round unit costs to two decimal places.)

Refer to Figure 5-9. Department Z's cost of goods transferred out using the FIFO method would be

45,775.

44,500.

45,540.

40,250.