Annin Laboratories uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for February: Beginning WIP inventory Direct materials $ 27,553 Conversion costs 8,905 Current period costs Direct materials 166,592 Conversion costs 86,000 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 45,400 units Ending inventory 25,000 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 weighted-average method. Note: Do not round intermediate calculations.
Annin Laboratories uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for February: Beginning WIP inventory Direct materials $ 27,553 Conversion costs 8,905 Current period costs Direct materials 166,592 Conversion costs 86,000 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 45,400 units Ending inventory 25,000 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 weighted-average method. Note: Do not round intermediate calculations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Annin Laboratories uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for February:
| Beginning WIP inventory | |
|---|---|
| Direct materials | $ 27,553 |
| Conversion costs | 8,905 |
| Current period costs | |
| Direct materials | 166,592 |
| Conversion costs | 86,000 |
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 | 45,400 | units | |
| Ending inventory | 25,000 | 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 weighted-average method.
Note: Do not round intermediate calculations.
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