- Joined
- Apr 5, 2011
- Messages
- 1
- Reaction score
- 0
I know how to complete the steps but the terminology confuses me. Can anyone help with this problem?
Hickory Corp uses a process costing system. Materials are added at the start of the process. Beginning inventory for January consisted of 2,000 units (40% complete for conversion) with a cost of $15,000. 10,000 units were started and completed during January. On January 31, the inventory consisted of 500 units that were 70% complete for conversion. Material cost per unit was calculated to be $5.00; conversion cost per unit was calculated to be $7.00. What would be the cost transferred to finished goods using the FIFO method?
Hickory Corp uses a process costing system. Materials are added at the start of the process. Beginning inventory for January consisted of 2,000 units (40% complete for conversion) with a cost of $15,000. 10,000 units were started and completed during January. On January 31, the inventory consisted of 500 units that were 70% complete for conversion. Material cost per unit was calculated to be $5.00; conversion cost per unit was calculated to be $7.00. What would be the cost transferred to finished goods using the FIFO method?