Question
The ABC Company manufactures a standard flash drive. During February, the firms Assembly Department started production of 75,000 flash drives. During the month, the firm
The ABC Company manufactures a standard flash drive. During February, the firms Assembly Department started production of 75,000 flash drives. During the month, the firm completed 80,000 units and transferred them to the Finishing Department. The firm ended the month with 10,000 units in ending inventory. There were 15,000 units in beginning inventory. All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process. The FIFO method of process costing is used by the company. Beginning work-in process was 30% complete as to conversion costs while ending work-in process was 80% complete as to conversion costs.
Beg. Inventory :
Direct materials: 24,000
Conversion Cost:35,000
Manufacturing cost added during the accounting period:
Direct materials: 168,000
Conversion Cost: 278,000
What is the cost of the goods transferred out during February?
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