The following data has been provided by Radiotronics Inc., a company that uses the FIFO method in its process costing system. The data concern the company's Wiring Department for the month of March. Cost in beginning work-in-process inventory$2,260 Units started and completed this month 4,650 Materials ConversionCost per equivalent unit$33.30 $21.20 Equivalent units required to complete the units in beginning work-in-process inventory 300 230 Equivalent units in ending work-in-process inventory 380 297 Required:Determine the cost of the units transferred out and the cost of ending work-in-process inventory of the department during March using the FIFO method.
What will be an ideal response?
FIFO method:
| Transferred to the next department: | |||
| From the beginning work-in-process inventory: | |||
| Cost in beginning work-in-process inventory | $ | 2,260 | |
| Cost to complete these units: | |||
| Materials, 300 EUs at $33.30 per EU | 9,990 | ||
| Conversion, 230 EUs at $21.20 per EU | 4,876 | ||
| Total cost from beginning inventory | 17,126 | ||
| Units started and completed this month, 4,650 units at $54.50 per unit | 253,425 | ||
| Total cost transferred to the next department | $ | 270,551 | |
| Work-in-process, March 31: | |||
| Materials, 380 EUs at $33.30 per EU | $ | 12,654 | |
| Conversion, 297 EUs at $21.20 per EU | 6,296 | ||
| Total work-in-process, March 31 | $ | 18,950 | |
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