Question
The following is a summary of the May 2016 operations of Reagan Company that makes and sells airplane models. Suppose that the company uses the
The following is a summary of the May 2016 operations of Reagan Company that makes and sells airplane models. Suppose that the company uses the FIFO method.
|
| Physical Units | Direct Materials | Conversion Costs |
| WIP, beginning inventory | 28,000 | $39,200 | $30,800 |
| Degree of completion for BI |
| 100% | 25% |
| Started in May | 60,000 |
|
|
| Completed and transferred out in May | 66,000 |
|
|
| WIP, ending inventory | 22,000 |
|
|
| Degree of completion for EI |
| 100% | 50% |
| Costs added in May |
| $90,000 | $280,000 |
What is the cost of goods transferred out during May?
Group of answer choices
$293,000
$363,000
$447,000
$517,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started