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Rasek [7]
3 years ago
7

Lo-crete produces quick setting concrete mix. Production of 200,000 tons was started in April, 190,000 tons were completed. Mate

rial costs were $3,152,000 for the month while conversion costs were $591,000. There was no beginning work-in-process; the ending work-in-process was 70% complete. What is the cost of the product that was completed and transferred to finished goods
Business
1 answer:
Dovator [93]3 years ago
3 0

Answer:

$3,564,400

Explanation:

Equivalent units of Production

Materials = 190,000 + 10,000 = 200,000

Conversion cost = 190,000 + 10,000 x 70% = 197,000

Cost per equivalent units

Materials = $3,152,000 / 200,000 =$15.76

Conversion Cost = $591,000 / 197,000 =$3.00

Total cost per unit = $18.76

Therefore,

the cost of the product that was completed and transferred to finished goods is $3,564,400 ( 190,000 x $18.76)

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Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2021 are as follows:
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Answer:

Ending inventory : $868

Explanation:

FIFO (First-In-First-Out) is a method of inventory valuation where the inventory that is received first is sold first. In other words, the earliest inventory is used first. This is common for perishable inventory such as fruits and vegetables which if not used fast, will be wasted.

01/01/21 : Beginning Inventory : 200 units x $5 = $1000

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Cost of goods sold : $1000 + $212 = $1212

Ending inventory:

Purchases : (100 - 40) units x $5.3 = $318

Purchases : 100 units x $5.5 = $550

Ending inventory : $318 + $550 = $868

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