Winter Corporation uses a process costing system. Materials are added at the beginning of the process while conversion costs are incurred uniformly throughout the process. Work in process inventory at the beginning of the period is 70% complete and 40% complete at the end of the period. Additional data is as follows:

- Assuming Winter uses the FIFO method, the entry to record the conversion costs added during the period would include?

Question

Winter Corporation uses a process costing system. Materials are added at the beginning of the process while conversion costs are incurred uniformly throughout the process. Work in process inventory at the beginning of the period is 70% complete and 40% complete at the end of the period. Additional data is as follows:

- Assuming Winter uses the FIFO method, the entry to record the conversion costs added during the period would include?

Quizplus · Accepted Answer

Debit to Work in process for $714,890 is correct because conversion costs added during the period are added to the Work in Process account, not directly to Finished Goods. The FIFO method of inventory accounting does not change this aspect of recording conversion costs.

Winter Corporation Uses a Process Costing System