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Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: On July
Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities:
Using the FIFO method, the number of equivalent units of conversion costs was
On July 1: | |
Beginning inventories | 850 units, 60% complete |
Direct materials cost | $5,000 |
Conversion costs | $4,000 |
During July: | |
Number of units started | 15,000 |
Direct materials added | $155,000 |
Conversion costs added | $83,520 |
On July 31: | |
Ending inventories | 1,600 units, 40% complete |
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