Merckley Company has a process costing system and uses the FIFO method. For May, the company's beginning work-in-progress inventory was 80% complete with respect to conversion, and the ending inventory was 50% complete with respect to conversion. Information on units processed and conversion costs incurred during May follow: Units Conversion cost Work-in-progress inventory on May 1 25,000 € 22,000 Units started into production, and costs incurred during the month 135,000 € 161,000 Units completed and transferred to finished goods during the month 110,000 Work-in-progress inventory on May 31 50,000 What was the amount of conversion cost in the ending work-in-progress inventory? a) €28,750 b) €35,000 c) €57,500 d) €70,000
5.Merckley Company has a
Units Conversion cost
Work-in-progress inventory on May 1 25,000 € 22,000
Units started into production, and
costs incurred during the month 135,000 € 161,000
Units completed and transferred to
finished goods during the month 110,000
Work-in-progress inventory on May 31 50,000
What was the amount of conversion cost in the ending work-in-progress inventory?
a) €28,750
b) €35,000
c) €57,500
d) €70,000
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