Annin Laboratories uses the FIFO method to account for its work-in-process inventories. The accounting records show the following information for February:Beginning WIP inventory Direct materials$ 29,053Conversion costs9,355Current period costs Direct materials176,567Conversion costs91,145Quantity information is obtained from the manufacturing records and includes the following:Beginning inventory6,000units(40% complete as to materials, 15% complete as to conversion)Current period units started45,700units Ending inventory28,000units(75% complete as to materials, 35% complete as to conversion) Compute the cost of goods transferred out and the ending inventory for February using the FIFO method.Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar.

Under the FIFO method, the beginning inventory units are completed before the introduced units. The…

Answered: Annin Laboratories uses the FIFO method…

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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Annin Laboratories uses the FIFO method to account for its work-in-process inventories. The accounting records show the following information for February:

Beginning WIP inventory
Direct materials	$ 29,053
Conversion costs	9,355
Current period costs
Direct materials	176,567
Conversion costs	91,145

Quantity information is obtained from the manufacturing records and includes the following:

Beginning inventory	6,000	units	(40% complete as to materials, 15% complete as to conversion)
Current period units started	45,700	units
Ending inventory	28,000	units	(75% complete as to materials, 35% complete as to conversion)

Compute the cost of goods transferred out and the ending inventory for February using the FIFO method.

Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar.

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