The USA Company manufactures flags in a single process. The following information has been provided by USA Company:
The beginning units still in process are 30% complete with respect to direct materials and 40% complete with respect to conversion costs and had $22,550 of materials costs and $108,725 of conversion costs. The ending units still in process are 45% complete with respect to direct materials and 35% complete with respect to conversion costs.
- Assuming the FIFO method was used, what was the total cost of the units completed and transferred out?

Question

The USA Company manufactures flags in a single process. The following information has been provided by USA Company:
 The beginning units still in process are 30% complete with respect to direct materials and 40% complete with respect to conversion costs and had $22,550 of materials costs and $108,725 of conversion costs. The ending units still in process are 45% complete with respect to direct materials and 35% complete with respect to conversion costs.
- Assuming the FIFO method was used, what was the total cost of the units completed and transferred out?

Quizplus · Accepted Answer

The correct answer is determined by calculating the cost of goods completed and transferred out using the FIFO (First-In, First-Out) inventory costing method. This method assumes that the oldest inventory items are sold or used first. The specific calculation would depend on the given data about beginning inventory, production costs, and units produced during the period. Without the specific data, we can't show the exact calculation, but the correct answer is based on applying the FIFO method to the provided data.

The USA Company Manufactures Flags in a Single Process