The cost of ending inventory is: Daily Custom Company manufactures plastic chairs in its Processing Department. Direct materials are included at the inception of the process. Conversion costs are incurred evenly throughout the process. The machine roke down at 60% stage of completion due to inefficient operator that caused some of the units in process to be spoiled with no market value. Daily Custom Company uses FIFO in accumulating costs. Data provided for Sentember of the current year are as follows Work in process, beg. Started 30,000 units Mat-100%; CC-89.5% 80,000 units 86,000 units Completed & transferred Work in process, end Costs: 20,000 units Mat-100%; CC-75% Work in Process, beg. Materials P70,000 40,000 Conversion costs Added during the period: Materials P160,000 Conversion costs 122,480

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The cost of ending inventory is:

The cost of ending inventory is:
Daily Custom Company manufactures plastic chairs in its Processing Department. Direet materials are included
at the inception of the process. Conversion costs are incurred evenly throughout the process. The machine
broke down at 60% stage of completion due to inefficient operator that caused some of the units in process to
be spoiled with no market value. Daily Custom Company uses FIFO in accumulating costs. Data provided for
Sentember of the current year are as follows
Work in process, beg.
Started
Completed & transferred
Work in process, end
30,000 units Mat-100%; CC-89.5%
80,000 units
86,000 units
20,000 units
Mat-100%; CC-75%
Costs:
Work in Process, beg.
Materials
P70,000
40,000
Conversion costs
Added during the period:
Materials
Conversion costs
P160,000
122,480
Transcribed Image Text:The cost of ending inventory is: Daily Custom Company manufactures plastic chairs in its Processing Department. Direet materials are included at the inception of the process. Conversion costs are incurred evenly throughout the process. The machine broke down at 60% stage of completion due to inefficient operator that caused some of the units in process to be spoiled with no market value. Daily Custom Company uses FIFO in accumulating costs. Data provided for Sentember of the current year are as follows Work in process, beg. Started Completed & transferred Work in process, end 30,000 units Mat-100%; CC-89.5% 80,000 units 86,000 units 20,000 units Mat-100%; CC-75% Costs: Work in Process, beg. Materials P70,000 40,000 Conversion costs Added during the period: Materials Conversion costs P160,000 122,480
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