Question
The following data has been gathered from the records of Gilas Manufacturing Company for August 2016. The company uses the FIFO process costing method. Materials
The following data has been gathered from the records of Gilas Manufacturing Company for August 2016. The company uses the FIFO process costing method. Materials are added at the beginning of processing; overhead is applied on a direct labor basis. The units are transferred to a second department for packaging.
Beginning WIP inventory5,000 units (40% completed as to conversion)
Started in August90,400 units
Ending WIP inventory4,000 units (70% completed as to conversion)
Cost incurred in August
MaterialsP433,920
Conversion costsP115,250
Beginning inventory cost totaled P24,875.
What is the cost of units transferred out to Packaging Department in August?
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Accounting Tools for business decision making
Authors: kimmel, weygandt, kieso
4th Edition
978-0470117262, 9780470534786, 470117265, 470534788, 978-0470095461
