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The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day:
The Matsui Lubricants plant uses the weighted-average 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 | $ | 970 | |
Conversion costs | 347 | ||
Current period costs | |||
Direct materials | 14,330 | ||
Conversion costs | 6,997 | ||
Quantity information is obtained from the manufacturing records and includes the following:
Beginning inventory | 700 | units | (70% complete as to materials, 55% complete as to conversion) |
Current period units started | 4,500 | units | |
Ending inventory | 1,400 | units | (50% complete as to materials, 20% complete as to conversion) |
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