Problem
The following cost information is available for July for the Crest Plant at Calvert Company:
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Beginning work-in-process inventory
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|
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Materials cost
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$ 62,500
|
|
Conversion cost
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41,500
|
|
Total
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$ 104,000
|
|
Current costs
|
|
|
Materials cost
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$ 185,000
|
|
Conversion cost
|
435,000
|
|
Total
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$ 620,000
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Materials are added at the beginning of the process. The following quantities have been recorded:
a) Beginning inventory, 46,500 partially complete gallons, 90 percent complete with respect to conversion costs.
b) Units started in July, 86,500 gallons.
c) Units transferred out in July, 96,500 gallons.
d) Ending inventory, 36,500 gallons, 35 percent complete with respect to conversion costs.
Task
• Compute the cost of goods transferred out and the ending inventory for July using the FIFO method.