Merced Corporation has a process costing system and uses the first-in, first-out method. For May, the company's beginning work in process inventory was 75% complete with respect to conversion, and the ending work in process inventory was 80% complete with respect to conversion. Information on units processed and conversion costs incurred during May follow: Units Conversion Work in process inventory on May 1 28,000 $ 44,000 Units started into production, and costs incurred during the month 130,000 $ 266,700 Units completed and transferred to finished goods during the month 108,000 Work in process inventory on May 31 50,000 The amount of conversion cost in the ending work in process inventory was: $222,700 $80,000 $68,000 $84,000
Merced Corporation has a process costing system and uses the first-in, first-out method. For May, the company's beginning work in process inventory was 75% complete with respect to conversion, and the ending work in process inventory was 80% complete with respect to conversion. Information on units processed and conversion costs incurred during May follow: Units Conversion Work in process inventory on May 1 28,000 $ 44,000 Units started into production, and costs incurred during the month 130,000 $ 266,700 Units completed and transferred to finished goods during the month 108,000 Work in process inventory on May 31 50,000 The amount of conversion cost in the ending work in process inventory was: $222,700 $80,000 $68,000 $84,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Merced Corporation has a process costing system and uses the first-in, first-out method. For May, the company's beginning work in process inventory was 75% complete with respect to conversion, and the ending work in process inventory was 80% complete with respect to conversion. Information on units processed and conversion costs incurred during May follow:
| Units | Conversion | |
|---|---|---|
| Work in process inventory on May 1 | 28,000 | $ 44,000 |
| Units started into production, and costs incurred during the month | 130,000 | $ 266,700 |
| Units completed and transferred to finished goods during the month | 108,000 | |
| Work in process inventory on May 31 | 50,000 |
The amount of conversion cost in the ending work in process inventory was:
|
$222,700
|
||
|
$80,000
|
||
|
$68,000
|
||
|
$84,000
|
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