FIFO Method, Valuation of Goods Transferred Out and Ending Work in Process McCourt Company uses the FIFO method to account for the costs of production. For the first processing department, the following equivalent units schedule has been prepared: Units started and completed Units, beginning work in process: 5,000 × 0% 5,000 × 40% Conversion Direct Materials Costs 29,000 29,000 2,000 Units, ending work in process: 3,000 x 100% 3,000 3,000 x 75% 2,250 Equivalent units of output 32,000 33,250 The cost per equivalent unit for the period was as follows: Direct materials $2.00 5.00 $7.00 Conversion costs Total The cost of beginning work in process was direct materials, $40,000; conversion costs, $60,000. Required: 1. Determine the cost of ending work in process. $ Determine the cost of goods transferred out.
FIFO Method, Valuation of Goods Transferred Out and Ending Work in Process McCourt Company uses the FIFO method to account for the costs of production. For the first processing department, the following equivalent units schedule has been prepared: Units started and completed Units, beginning work in process: 5,000 × 0% 5,000 × 40% Conversion Direct Materials Costs 29,000 29,000 2,000 Units, ending work in process: 3,000 x 100% 3,000 3,000 x 75% 2,250 Equivalent units of output 32,000 33,250 The cost per equivalent unit for the period was as follows: Direct materials $2.00 5.00 $7.00 Conversion costs Total The cost of beginning work in process was direct materials, $40,000; conversion costs, $60,000. Required: 1. Determine the cost of ending work in process. $ Determine the cost of goods transferred out.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:FIFO Method, Valuation of Goods Transferred Out and Ending Work in Process
McCourt Company uses the FIFO method to account for the costs of production. For the first processing department, the following equivalent units schedule
has been prepared:
Units started and completed
Units, beginning work in process:
5,000 × 0%
5,000 × 40%
Conversion
Direct Materials
Costs
29,000
29,000
2,000
Units, ending work in process:
3,000 x 100%
3,000
3,000 x 75%
2,250
Equivalent units of output
32,000
33,250
The cost per equivalent unit for the period was as follows:
Direct materials
$2.00
5.00
$7.00
Conversion costs
Total
The cost of beginning work in process was direct materials, $40,000; conversion costs, $60,000.
Required:
1. Determine the cost of ending work in process.
$
Determine the cost of goods transferred out.
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