Refer to the following information about the Shaping Department of the Minnesota Factory for the month of August. Minnesota Factory uses the FIFO method of inventory costing. The cost per equivalent unit of materials is $10.00, and the cost per equivalent unit of labor and overhead is $22.00. Compute the cost that should be assigned all units that were completed and transferred during August.?EquivalentUnitsTotalCostBeginning Work in Process:?? Costs from prior month………………………?$ 7,000 Materials added………………………………300? Labor and overhead added……………………375?Started and completed goods:?? Materials added………………………………2,000? Labor and overhead
added……………………2,000?Ending Work in Process:?? Materials added………………………………320? Labor and overhead added……………………360?
What will be an ideal response?
| ? | Equivalent Units | Cost per Unit | Total Cost |
| Beginning Work in Process: | ? | ? | ? |
| Costs from prior month…………… | ? | ? | $ 7,000 |
| Materials costs added……………… | 300 | $10.00 | 3,000 |
| Labor and overhead cost added…… | 375 | $22.00 | 8,250 |
| Total……………………………… | ? | ? | $18,250 |
| Started and completed goods: | ? | ? | ? |
| Materials costs added……………… | 2,000 | $10.00 | $20,000 |
| Labor and overhead cost added…… | 2,000 | $22.00 | 44,000 |
| Total……………………………… | ? | ? | $64,000 |
| Total cost of finished goods………… | ? | ? | $82,250 |
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