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Question
Refer to the following information about the Dipping Department of the Indiana Factory for the month of August. Indiana Factory uses the FIFO method of inventory costing.
| Equivalent Units | Total Cost | |
| Beginning goods in process: | ||
| Costs from prior month......................................... | $ 7,000 | |
| Materials added......................................... | 300 | |
| Labor and overhead added......................................... | 375 | |
| Started and completed goods: | ||
| Materials added......................................... | 2,000 | |
| Labor and overhead added......................................... | 2,000 | |
| Ending goods in process: | ||
| Materials added......................................... | 320 | |
| Labor and overhead added......................................... | 360 |
The cost per equivalent unit of materials is $10.00, and the cost per equivalent unit of labor and overhead is $22.00. Compute the cost that should be assigned to the beginning units that were completed and transferred during August.
Answer
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Related questions
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