XYZ makes widgets. Materials are added at the beginning of the process and conversion costs are evenly incurred. At the beginning of October, work in process is 40% complete and at the end of the month it is 60% complete. Other data for the month include:
Beginning work-in-process inventory 1,600 units
Units started 2,000 units
Units moved to finished goods 3,200 units
Conversion costs incurred during the month $200,000
Cost of direct materials incurred during the month $260,000
Beginning work-in-process costs:
Conversion $ 82,080
1. Determine the cost of the units completed and transferred to finished goods and the ending WIP balance using the weighted average method.
2. Determine the cost of the units completed and transferred to finished goods and the ending WIP balance using the FIFO method.
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