The Matsui Lubricants plant uses the FIFO method to account for its work-in-proc

Question

The Matsui Lubricants plant uses the FIFO method to account for its work-in-process inventories. The accounting records show the following information for a particular day:

Compute the cost of goods transferred out and the ending inventory using the FIFO method. (Do not round your intermediate calculations. Round your final answers to nearest whole dollar value.)

The Matsui Lubricants plant uses the FIFO method to account for its work-in-process inventories. The accounting records show the following information for a particular day:

Explanation / Answer

Equivalent unit of production ;

Cost per equivalent unit of material = 27667/3144 = 8.80

Cost per equivalent unit of conversion = 15574/2884 = 5.40

Cost of goods transferred out = 14.2*2624+2800 = $40061

Cost of ending inventory = (8.8*520+5.4*260) = $5980

Whole unit % EUP-material % EUP-conversion Beginning inventory 560 40% 224 40% 224 Unit started and completed 2400 100% 2400 100% 2400 Ending inventory 1300 40% 520 20% 260 Total 4260 3144 2884

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