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The following is a summary of the May 2016 operations of Reagan Company that makes and...

The following is a summary of the May 2016 operations of Reagan Company that makes and sells airplane models. Suppose that the company uses the FIFO method.

Physical Units

Direct Materials

Conversion Costs

WIP, beginning inventory

28,000

$39,200

$30,800

     Degree of completion for BI

100%

25%

Started in May

60,000

Completed and transferred out in May

66,000

WIP, ending inventory

22,000

     Degree of completion for EI

100%

50%

Costs added in May

$90,000

$280,000

1.What is the amount of direct materials cost assigned to ending WIP at the end of May?

Group of answer choices

$44,000

$39,200

$33,000

$22,000

2.What is the cost of goods transferred out during May?

Group of answer choices

$293,000

$517,000

$363,000

$447,000

Solutions

Expert Solution

ekkarill92 answered 2 years ago
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