Calculation of the Cost of Goods Transferred Out During February:
Units that were started during February were completed during February = 75,000 - 10,000 = 65,000
Equivalent units for conversion costs during February = (15,000 x 0.7) + 65,000 + 10,000 (0.8) = 83,500
The amount of direct materials cost assigned to ending work-in-process inventory at the end of February = $168,000/75,000 = $2.24 x 10,000 = $22,400
<span><span>The Costs of Beginning Inventory ($24,000 + $35,000)$59,000
</span><span>
Direct Materials ($2.24 * 65,000)$145,600
</span><span>
Conversion Costs [$278,000/(10,500 + 8,000 + 65,000)] x 65,000$216,450
</span><span>
FG beginning inventory (15,000 x 0.7 x 3.33)$34,965
</span><span>
Total Costs of Goods$456,015</span></span>
Therefore, the Total Cost of Goods Transferred Out During February is $456,015
