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Question
Refer to the following information about the Painting Department in the Richardson Factory for the month of June. Richardson Factory uses the FIFO method of inventory costing.
Beginning goods in process inventory:
Physical units...................................................... ...................................................... 5,000..................................... units
% complete for materials...................................................... ........................................ 70%
% complete for labor and overhead...................................................... ........................................ 25%
Materials cost from May...................................................... ......................................... $7,350
Labor and overhead cost from May...................................................... .......................................... $3,125
Product started and completed:
Physical units............................................ ............................................ 40,000........................ units
Ending goods in process inventory:
Physical units...................................................... ...................................................... 4,000.................................... units
% complete for materials...................................................... .............................................. 40%
% complete for labor and overhead...................................................... .............................................. 10%
Manufacturing costs for June:
Materials...................................................... ......................................... $96,975
Labor and overhead $79,470
Compute the total cost of all units that were completed and transferred to finished goods during June. Compute the total cost of the ending goods in process inventory.
Answer
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Related questions
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