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Bellevue Chemicals had beginning work-in-process inventory of $253,885 on March 1. Of this amount, $ 102,205 was the cost of direct materials and $151,680 was the cost of conversion. The 24, 300 units in the beginning inventory were 45 percent complete with respect to direct materials and 65 percent complete with respect to conversion costs. During March, 58, 450 units were transferred out and 15,500 remained in ending inventory. The units in ending inventory were 70 percent complete with respect to direct materials and 15 percent complete with respect to conversion costs. Costs incurred during March amounted to $944, 225 for direct materials and $ 1,051,665 for conversion. a-1. Compute the cost of goods transferred out and the cost of ending inventory for March using the FIFO method. a-2. Is the ending inventory higher or lower under the weighted - average method compared to FIFO?

Bellevue Chemicals had beginning work-in-process inventory of $253,885 on March 1. Of this amount, $ 102,205 was the cost of direct materials and $151,680 was the cost of conversion. The 24, 300 units in the beginning inventory were 45 percent complete with respect to direct materials and 65 percent complete with respect to conversion costs. During March, 58, 450 units were transferred out and 15,500 remained in ending inventory. The units in ending inventory were 70 percent complete with respect to direct materials and 15 percent complete with respect to conversion costs. Costs incurred during March amounted to $944, 225 for direct materials and $ 1,051,665 for conversion. a-1. Compute the cost of goods transferred out and the cost of ending inventory for March using the FIFO method. a-2. Is the ending inventory higher or lower under the weighted - average method compared to FIFO?

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Bellevue Chemicals had beginning work-in-process inventory of $253,885 on March 1. Of this amount, $ 102,205 was the cost of direct materials and $151,680 was the cost of conversion. The 24, 300 units in the beginning inventory were 45 percent complete with respect to direct materials and 65 percent complete with respect to conversion costs. During March, 58, 450 units were transferred out and 15,500 remained in ending inventory. The units in ending inventory were 70 percent complete with respect to direct materials and 15 percent complete with respect to conversion costs. Costs incurred during March amounted to $944, 225 for direct materials and $ 1,051,665 for conversion. a-1. Compute the cost of goods transferred out and the cost of ending inventory for March using the FIFO method. a-2. Is the ending inventory higher or lower under the weighted - average method compared to FIFO?
Transcribed Image Text:Bellevue Chemicals had beginning work-in-process inventory of $253,885 on March 1. Of this amount, $ 102,205 was the cost of direct materials and $151,680 was the cost of conversion. The 24, 300 units in the beginning inventory were 45 percent complete with respect to direct materials and 65 percent complete with respect to conversion costs. During March, 58, 450 units were transferred out and 15,500 remained in ending inventory. The units in ending inventory were 70 percent complete with respect to direct materials and 15 percent complete with respect to conversion costs. Costs incurred during March amounted to $944, 225 for direct materials and $ 1,051,665 for conversion. a-1. Compute the cost of goods transferred out and the cost of ending inventory for March using the FIFO method. a-2. Is the ending inventory higher or lower under the weighted - average method compared to FIFO?
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