Eagle Corportation uses FIFO to calculate their inventory values. Use the inform

Question

Eagle Corportation uses FIFO to calculate their inventory values. Use the information below calculated by Eagle:

Please show you work in answering the following:

A. What is cost completed and transferred out for Direct Materials?

B. What is cost completed and transferred out for Conversion Costs?

Direct Materials Conversion Costs Cost Information: Associated with Beginning $43,000 $35,000 WIP (from prior period) Incurred in the current period $112,000 $88,200 Equivalent Units: Completing Beginning WIP 1200 3500 Started and Completed 25000 25000 Starting Ending WIP 1300 1000

Explanation / Answer

Cost per equivalent unit =cost incurred during this period/equivalent units

Direct material=$112,000/(1200+25000+1300)

=$4.07273

Conversion =$88,200(3500+25,000+1000)

=$2.98983

A. Cost completed and transferred out for direct material=$149,705

B. Cost completed and transferred out for conversion costs=$120,210

Direct material conversion total Cost in beginning inventory $43,000 $35,000 $78,000 Cost to complete beginning inventory $4,887 $10,464 $15,351 Cost of units started and completed $101,818 $74,746 $176,564 Total cost of completed and transferred out units $149,705 $120,210 $269,915

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.