Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [The following information applies to the questions displayed below.) Pacific Ink had beginning work-in-process inventory of $959,660 on October 1. Of this amount,

image text in transcribed
image text in transcribed
Required information [The following information applies to the questions displayed below.) Pacific Ink had beginning work-in-process inventory of $959,660 on October 1. Of this amount, $402,560 was the cost of direct materials and $557100 was the cost of conversion. The 58,000 units in the beginning inventory were 30 percent complete with respect to both direct materials and conversion costs. During October, 122,000 units were transferred out and 40,000 remained in ending inventory. The units in ending inventory were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. Costs incurred during the period amounted to $3,005,200 for direct materials and $3,786,840 for conversion. a-1. Compute the cost of goods transferred out and the cost of ending Inventory using the FIFO method. a-2. Is the ending inventory higher or lower under the weighted average method compared to FIFO? Complete this question by entering your answers in the tabs below. Req A1 Reg A2 Compute the cost of goods transferred out and the cost of ending Inventory using the FIFO method. (Do not round Intermediate calculations.) Cost of goods transferred out Cost of ending inventory Reg A2 > Required information [The following information applies to the questions displayed below.) Pacific Ink had beginning work-in-process inventory of $959,660 on October 1. Of this amount, $402.560 was the cost of direct materials and $557100 was the cost of conversion. The 58,000 units in the beginning inventory were 30 percent complete with respect to both direct materials and conversion costs. During October, 122,000 units were transferred out and 40,000 remained in ending inventory. The units in ending Inventory were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. Costs incurred during the period amounted to $3,005,200 for direct materials and $3,786,840 for conversion. a-1. Compute the cost of goods transferred out and the cost of ending inventory using the FIFO method, a-2. Is the ending inventory higher or lower under the weighted average method compared to FIFO? Complete this question by entering your answers in the tabs below. Reg A1 Ref A2 Is the ending Inventory higher or lower under the weighted-average method compared to FIFO? Higher Lower

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Issues In Social Science

Authors: Simon Grima, Ercan Özen, Hakan Boz

1st Edition

1800439318, 9781800439313

More Books

Students also viewed these Accounting questions

Question

LO6Outline steps for creating a performance improvement plan.

Answered: 1 week ago