Question: The following data have been compiled for Lily Enterprises Ltd for the month of August. Conversion occurs uniformly throughout the production process. Work in process,
The following data have been compiled for Lily Enterprises Ltd for the month of August. Conversion occurs uniformly throughout the production process.
| Work in process, 1 August 28,000 units |
|
|
| Direct material (100% complete) |
| $38,000 |
| Conversion (26% complete) |
| $16,000 |
| Balance in work in process, 1 August |
| $54,000 |
| Units started during August |
| 195,000 |
| Units completed during August and transferred out to finished goods inventory |
| 107,000 |
| Work in process, 31 August: |
|
|
| Direct material (100% complete) |
|
|
| Conversion (13% complete) |
|
|
| Costs incurred during August: |
|
|
| Direct material |
| $120,000 |
| Conversion costs: |
|
|
| Direct labour | $60,000 |
|
| Manufacturing overhead | $122,000 | $182,000 |
| Total production costs incurred during August |
| $302,000 |
Calculate and enter the amount for cost of goods completed and transferred out during August in the answer space below
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