Yellow Corportation uses FIFO to calculate their inventory values. Use the infor

Question

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

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

Calculate cost per equivalent unit :

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

Cost of completed and transfered out = (26200*4.07+43000) = 149634

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

Cost of completed and transfered out = (28500*2.99+35000) = 120215

Material conversion cost Incurred in the current period 112000 88200 Equivalent unit 27500 29500 Cost per equivalent unit 4.07 2.99

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