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    costs assigned to the units transferred out

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    FIFO Aluminum processes a single type of aluminum. During the current period the following information was given:
    Units Materials Costs Converstion Costs
    Beginning Inventory 3,000 $4,500 $4,800
    Started During the Current Period 20,000 $48,000 $65,000
    Ending Inventory 2,500
    All materials are added at the beginning of the production process. The beginning inventory was 30% complete as to conversion cost, while the ending inventory was 40% completed for conversion costs. FIFO Aluminum uses the first-in, first-out system of process costing.
    What were the costs assigned to the units transferred out this period (round equivalent unit cost to the nearest penny).

    a. $113,236
    b. $113,160
    c. $113,980
    d. $122,300

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    Solution Preview

    a. $113,236

    (3,000 x 70%) + 17,500 + (2,500 x 40%) = 20,600 conversion

    $65,000 / 20,600 = ...

    Solution Summary

    The solution answers and explains the answer to the following practice question:

    FIFO Aluminum processes a single type of aluminum. During the current period the following information was given:
    Units Materials Costs Converstion Costs
    Beginning Inventory 3,000 $4,500 $4,800
    Started During the Current Period 20,000 $48,000 $65,000
    Ending Inventory 2,500
    All materials are added at the beginning of the production process. The beginning inventory was 30% complete as to conversion cost, while the ending inventory was 40% completed for conversion costs. FIFO Aluminum uses the first-in, first-out system of process costing.
    What were the costs assigned to the units transferred out this period (round equivalent unit cost to the nearest penny).

    a. $113,236
    b. $113,160
    c. $113,980
    d. $122,300

    $2.19

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