At Barbie Company, direct materials are added at the start of the process and conversion costs are added evenly during the process. Company is using FIFO method. Beginning WIP (conversion 75% completed) 12,000 units Units started 74,000 units Units completed and transferred out during current month 65,000 units Ending WIP (conversion 80% completed) 18,000 units Inspection occurs when production is 100% completed. Normal spoilage is 4% of good units that successfully pass the inspection point in current month. BWIP cost, DM $216,000, CC $27,000 Cost added during the period. DM $1,346,800, CC $234,880 What is the cost of units completed and transferred out? If using weighted average method, what would be the cost of units completed and transferred? Having trouble calculating cost of units completed and transferred, please write a formula.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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At Barbie Company, direct materials are added at the start of the process and conversion costs are added evenly during the process. Company is using FIFO method.

Beginning WIP (conversion 75% completed) 12,000 units

Units started 74,000 units

Units completed and transferred out during current month 65,000 units

Ending WIP (conversion 80% completed) 18,000 units

Inspection occurs when production is 100% completed. Normal spoilage is 4% of good units that successfully pass the inspection point in current month.

BWIP cost, DM $216,000, CC $27,000

Cost added during the period. DM $1,346,800, CC $234,880

What is the cost of units completed and transferred out?

If using weighted average method, what would be the cost of units completed and transferred?

Having trouble calculating cost of units completed and transferred, please write a formula. 

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