Topic: Average and FIFO Costing

Percent of completion: (materials, 40%, conversion cost, 20%) FIFO Costing Materials A company uses the FIFO method to account for its work in ons. The account records show the following information: Beginning work in process inventory Debits to work in process inventory this period: Percent of completion materials, 60%, conversion cost, 30%) Units: Conversion costs 341 Materials Conversion costs P365 180 Beginning inventory P 3,714 2258 Started this period Ending inventory 300 units 2,000 units 600 units Requirements: 1. Compute the equivalent units for materials and conversion costs. 2. Compute the unit cost for materials and conversion costs. 3. Compute the cost of goods transferred out. 4. Compute the cost of the ending inventory