Crane Desserts specializes in the production of sweet plant-based bakery items. The company's top seller for the past few years has been its cherry cheesecake made with a flourless crust and organic fruit toppings. Crane is currently considered a boutique operation but is looking to increase production and to expand its offerings and customer base. In an effort to refine its spending efforts and advertising costs, the company will be compiling costing data on its cherry cheesecake. The following costing information applies to the current year: Beginning Work-in-Progress (WIP) Inventory Costs Added During the Period Beginning Inventory Units Started this Year Ending Inventory The following production summary has also been compiled for this year's operations: Physical Units 800 O $152035.00 $158563.00 O $161209.10 $158643.00 64100 Crust $1900 $58331 1000 Cherry Toppings $1500 $25620 Crust Cherry Toppings 100% 100% 100% 95% Conversion Costs (CC) $2600 $70983 Conversion Costs 35% 91% If management decides to use the First-In, First-Out (FIFO) method, then how much cost will be assigned to the units completed and transferred out of the manufacturing process? (Do not round intermediate calculations.)
Crane Desserts specializes in the production of sweet plant-based bakery items. The company's top seller for the past few years has been its cherry cheesecake made with a flourless crust and organic fruit toppings. Crane is currently considered a boutique operation but is looking to increase production and to expand its offerings and customer base. In an effort to refine its spending efforts and advertising costs, the company will be compiling costing data on its cherry cheesecake. The following costing information applies to the current year: Beginning Work-in-Progress (WIP) Inventory Costs Added During the Period Beginning Inventory Units Started this Year Ending Inventory The following production summary has also been compiled for this year's operations: Physical Units 800 O $152035.00 $158563.00 O $161209.10 $158643.00 64100 Crust $1900 $58331 1000 Cherry Toppings $1500 $25620 Crust Cherry Toppings 100% 100% 100% 95% Conversion Costs (CC) $2600 $70983 Conversion Costs 35% 91% If management decides to use the First-In, First-Out (FIFO) method, then how much cost will be assigned to the units completed and transferred out of the manufacturing process? (Do not round intermediate calculations.)
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Crane Desserts specializes in the production of sweet plant-based bakery items. The company's top seller for the past few years has
been its cherry cheesecake made with a flourless crust and organic fruit toppings. Crane is currently considered a boutique operation,
but is looking to increase production and to expand its offerings and customer base. In an effort to refine its spending efforts and
advertising costs, the company will be compiling costing data on its cherry cheesecake. The following costing information applies to
the current year:
Beginning Work-in-Progress (WIP) Inventory
Costs Added During the Period
Beginning Inventory
Units Started this Year
Ending Inventory
The following production summary has also been compiled for this year's operations:
Physical Units
O $152035.00
$158563.00
O $161209.10
$158643.00
800
Crust
$1900
$58331
64100
Cherry Toppings
$1500
$25620
Crust Cherry Toppings
100%
1000 100%
100%
95%
Conversion Costs (CC)
$2600
$70983
Conversion Costs
35%
91%
If management decides to use the First-In, First-Out (FIFO) method, then how much cost will be assigned to the units completed and
transferred out of the manufacturing process? (Do not round intermediate calculations.)
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