Reference no: EM131912910

Problem

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 $ 2,300
Conversion costs 500
Current period costs
Direct materials 30,638
Conversion costs 17,287

Quantity information is obtained from the manufacturing records and includes the following:

Beginning inventory 570 units (60% complete as to materials, 60% complete as to conversion)
Current period units started 4,200 units
Ending inventory 1,000 units (50% complete as to materials, 10% complete as to conversion)

Required:

Compute the cost of goods transferred out and the ending inventory using the FIFO method.