Total Cost - FIFO method Abacus Corp. manufactures Product A in a single production process. the following
Question:
Total Cost - FIFO method
Abacus Corp. manufactures Product A in a single production process. the following information was recorded for the year 20XX:
Beginning work-in-process Inventory:
10,000 units, 0.20 complete (as) to conversion;
Materials Cost $25,000;
Conversion Costs $20,500.
Ending work-in-process Inventory:
4,000 units, 0.50 complete (as) to conversion.
For the Current Year:
60,000 units started, 66,000 units completed and transferred to finished goods;
Conversion Costs Recorded, $115,500.
Materials are added at the beginning of the process. assuming Abacus uses the weighted average method, show:
(A) Total cost of goods completed;
(B) Total cost of ending work-in-process inventory;
(C) Entry to record transfer of completed units to finished goods.
Please, explain every step as detailed as possible.
Thank you in advance
Expert Answer:
Abacus Corp Cost of Goods Completed and Ending WIP FIFO Method Assumptions Were using the FIFO FirstIn FirstOut method for costing inventory Materials ... View the full answer
