### Inventory Calculation Problem**Problem Statement:**1. Beginning inventory consisted of 1,200 units. All materials and 40 percent of labor and overhead were added in the prior period at a cost of $17,690. In addition, another 7,500 units were started and completed during the current period. The cost per equivalent unit is $5.50 for materials; $12.70 for labor, and $6.80 for overhead. What is the total cost of goods transferred out in the current period using FIFO?**Options:**a. $201,540 b. $217,500 c. $219,230 d. $187,500 e. $205,190 f. $223,190 g. $214,334 h. None of the above**Explanation:** Using FIFO (First-In, First-Out) for inventory calculation ensures that the oldest inventory costs are used up first in determining the cost of goods sold or transferred out. This exercise involves calculating the total cost of goods transferred out during the current period by including initial inventory costs and the additional costs incurred for completion.- **Beginning inventory:** 1,200 units- **Cost for beginning inventory materials, labor, and overhead:** $17,690, with emphasis on labor and overhead at 40% completion.- **Current period production:** 7,500 units fully completed- **Cost per equivalent unit:** - Materials: $5.50 - Labor: $12.70 - Overhead: $6.80By applying FIFO, determine which option correctly represents the total cost of goods transferred during the current period.

Name: ### Inventory Calculation Problem**Problem Statement:**1. Beginning i
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Description: ### Inventory Calculation Problem**Problem Statement:**1. Beginning inventory consisted of 1,200 units. All materials and 40 percent of labor and overhead were added in the prior period at a cost of $17,690. In addition, another 7,500 units were sta

Answer:- correct option is c) $ 219,230

Business

Accounting

1. Beginning inventory consisted of 1,200 units. All materials and 40 percent of labor and overhead were added in the prior period at a cost of $17,690. In addition, another 7,500 units were started and completed during the current period. The cost per equivalent unit is $5.50 for materials; $12.70 for labor, and $6.80 for overhead. What is the total cost of goods transferred out in the current period using FIFO? a. $201,540 b. $217,500 c. $219,230 d. $187,500 e. $205,190 f. $223,190 g. $214,334 h. None of the above

1. Beginning inventory consisted of 1,200 units. All materials and 40 percent of labor and overhead were added in the prior period at a cost of $17,690. In addition, another 7,500 units were started and completed during the current period. The cost per equivalent unit is $5.50 for materials; $12.70 for labor, and $6.80 for overhead. What is the total cost of goods transferred out in the current period using FIFO? a. $201,540 b. $217,500 c. $219,230 d. $187,500 e. $205,190 f. $223,190 g. $214,334 h. None of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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