For each of the following independent cases, calculate the information requested, using FIFO costing. a. Beginning inventory
Question:
For each of the following independent cases, calculate the information requested, using FIFO costing.
a. Beginning inventory amounted to 1,000 units. The firm started and completed 4,000 units during this period. At the end of the period, the firm had 3,000 units in inventory that were 40 percent complete. Using FIFO costing, the equivalent production for the period was 5,600 units. What was the percentage of completion of the beginning inventory?
b. The ending inventory included $8,700 for conversion costs. During the period, the firm required 4,200 equivalent units to complete the beginning inventory and started and completed 6,000 units. The ending inventory represented 2,000 equivalent units of work this period. What was the total conversion cost incurred during this period?
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
Step by Step Answer:
Managerial Accounting An Introduction to Concepts Methods and Uses
ISBN: 978-0324639766
10th Edition
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil