The following cost information is available for July for the Crest Plant at Calvert Company: Beginning work-in-process inventory Materials cost $ 66,000 Conversion cost 45,000 Total $ 111,000 Current costs Materials cost $ 220,000 Conversion cost 470,000 Total $ 690,000 Materials are added at the beginning of the process. The following quantities have been recorded: Beginning inventory, 50,000 partially complete gallons, 10 percent complete with respect to conversion costs. Units started in July, 90,000 gallons. Units transferred out in July, 100,000 gallons. Ending inventory, 40,000 gallons, 70 percent complete with respect to conversion costs. Required: Compute the cost of goods transferred out and the ending inventory for July using the FIFO method. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
The following cost information is available for July for the Crest Plant at Calvert Company:
| Beginning work-in-process inventory | |
|---|---|
| Materials cost | $ 66,000 |
| Conversion cost | 45,000 |
| Total | $ 111,000 |
| Current costs | |
| Materials cost | $ 220,000 |
| Conversion cost | 470,000 |
| Total | $ 690,000 |
Materials are added at the beginning of the process. The following quantities have been recorded:
Beginning inventory, 50,000 partially complete gallons, 10 percent complete with respect to conversion costs.
Units started in July, 90,000 gallons.
Units transferred out in July, 100,000 gallons.
Ending inventory, 40,000 gallons, 70 percent complete with respect to conversion costs.
Required:
Compute the cost of goods transferred out and the ending inventory for July using the FIFO method.
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar.
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