Wax Company has the following information available for its process costing system for the month of
July in the finishing department, the second of a multiple department manufacturing plant. Materials are
added at the end of the process in finishing. Beginning inventory was 20% complete for conversion cost.
Ending inventory was 70% complete for conversion costs.

Costs added this month: Materials: $450,000; Conversion: $575,000; Prior department: $725,000
Required: Calculate the cost of the units transferred out during July and the ending inventory at July 31 using the FIFO method. There were no spoiled units. Round equivalent-unit costs to four decimal points.

Question

Wax Company has the following information available for its process costing system for the month of
July in the finishing department, the second of a multiple department manufacturing plant. Materials are
added at the end of the process in finishing. Beginning inventory was 20% complete for conversion cost.
Ending inventory was 70% complete for conversion costs.
 
Costs added this month: Materials: $450,000; Conversion: $575,000; Prior department: $725,000
Required: Calculate the cost of the units transferred out during July and the ending inventory at July 31 using the FIFO method. There were no spoiled units. Round equivalent-unit costs to four decimal points.

Quizplus · Accepted Answer

The Answer of Wax Company has the following information available for its process costing system for the month of
July in the finishing department, the second of a multiple department manufacturing plant. Materials are
added at the end of the process in finishing. Beginning inventory was 20% complete for conversion cost.
Ending inventory was 70% complete for conversion costs.
 
Costs added this month: Materials: $450,000; Conversion: $575,000; Prior department: $725,000
Required: Calculate the cost of the units transferred out during July and the ending inventory at July 31 using the FIFO method. There were no spoiled units. Round equivalent-unit costs to four decimal points.

Wax Company Has the Following Information Available for Its Process