Cost of Units Completed and Ending Inventory; FIFO Method Clearwater Candy Co. h
ID: 2564590 • Letter: C
Question
Cost of Units Completed and Ending Inventory; FIFO Method Clearwater Candy Co. had a cost per equivalent pound (for the month) of $4.56 for materials, $1.75 for labor, and $1.00 for overhead. During the month, 10,250 lb were completed and transferred to finished goods. The 3,200 lb in ending work in process were 100% complete as to materials and 60% complete as to labor and overhead. At the beginning of the month, 1,500 lb were in process, 100% complete as to materials and 50% complete as to labor and overhead. The beginning inventory had a cost of $8,775. Clearwater uses FIFO costing. Round all interim calculations to the nearest whole dollar. Required: 1. Calculate the cost of the pounds completed and transferred to finished goods. 2. Calculate the cost of the ending work in process.Explanation / Answer
1 Beginning work in process 8775 Costs to complete beginning work in process 2063 =750*(1.75+1) Costs of pounds started and completed 63963 =8750*(4.56+1.75+1) Cost of pounds completed and transferred 74800 or 74801 2 Cost of ending wotk in process: Materials 14592 =3200*4.56 Labor and overhead 5280 =1920*(1.75+1) Total 19872