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Question - The Matsui Lubricants plant uses the FIFO method to account for its work-in-process inventories. The accounting records show the following information for a particular day.
Beginning WIP inventory Direct materials $980
Conversion costs 302
Current period costs Direct materials 12,208
Conversion costs 7,788
Quantity information is obtained from the manufacturing records and includes the following.
Beginning inventory 550units (70% complete to materials, 60% complete to conversion) Current period units started 4,200 units
Ending inventory 1,100 units (50% complete to materials, 20% complete to conversion)
Required - Compute the cost of goods transferred out and the ending inventory using the FIFO method?
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