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FIFO Aluminum processes a single type of aluminum. During the current period the following information was...

FIFO Aluminum processes a single type of aluminum. During the current period the following information was given:

Units Material Costs Conversion 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, while the ending inventory was 40% completed for conversion purposes.

FIFO Aluminum uses the first-in, first-out system of process costing.

What were the costs assigned to the units transferred out this period >

Solutions

Expert Solution

The computation of costs assigned to the units transferred out this period but before that, we need to follow some steps which are shown below:-

Step 1: Units transferred

With the help of given formulas:-

Step 2: Equivalent Units

With the help of given formulas:-

Step 3: Cost per Equivalent units

With the help of given formulas:-

and finally costs assigned to the units transferred out this period:-

With the help of given formulas:-

So, Total cost of work finished this period is $113,191

ekkarill92 answered 1 year ago
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