Process Costing FIFO Method:

The Kenley Corp adds direct materials at the beginning of the manufacturing process. On March 1, 2,300 units were in process. All direct materials had been added and they were 30 % complete as far as conversion costs. The cost of the beginning inventory consisted of direct materials of $4,699 and conversion costs of $1,219. During March 31,500 units were added at a material cost of $65,520. Conversion costs were $54,213. On March 31 there were 3,050 units in the ending inventory. All direct materials were added and they were 60% complete for conversion costs.