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Required information The Matsui Lubricants plant uses the FIFO method to account for its work-in-process inventories. The accounting records show the following information for a
Required information
The Matsui Lubricants plant uses the FIFO method to account for its work-in-process inventories. The accounting records show the following information for a particular day:
Beginning WIP inventory | |||
Direct materials | $ | 962 | |
Conversion costs | 497 | ||
Current period costs | |||
Direct materials | 19,320 | ||
Conversion costs | 14,994 | ||
Quantity information is obtained from the manufacturing records and includes the following:
Beginning inventory | 600 | units | (70% complete as to materials, 55% complete as to conversion) |
Current period units started | 5,500 | units | |
Ending inventory | 1,700 | units | (50% complete as to materials, 20% complete as to conversion) |
Compute the cost of goods transferred out and the ending inventory using the FIFO method. (Do not round intermediate calculations.)
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