PC Refinery uses a FIFO process costing system. For a particular period, its opening inventory consisted...

Free

90.2K

Verified Solution

Question

Accounting

PC Refinery uses a FIFO process costing system. For a particularperiod, its opening inventory consisted of 100 items (60 per centcomplete as to conversion costs) whose costs were $1,600 made up ofmaterial $300 and conversion cost $1,300. During the month, 1,000items were started and 950 were completed. Ending inventory of WIPwas one-third complete. There was no spoilage. Costs placed inprocess during the month were materials $1,785 and conversion costs$13,865. Materials are added at the halfway point. What is theamount of cost that would be allocated to goods completed in theperiod?
(a) $16,900.
(b) $16,513.
(c) $16,150.
(d) $14,913.

Answer & Explanation Solved by verified expert

3.5 Ratings (398 Votes)

		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, beginning	100	0	40
Started and completed in month	850	850	850
Transferred and completed in Month	950	850	890
Inventory in process, ending	150	0	50
Total units to be assigned costs	1100	850	940
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Costs placed in process during the month		1785	13865
Total equivalent units		850	940
Cost per equivalent unit		2.1	14.75
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, beginning balance			1600
To complete inventory in process, Beginning		590	590	(40*14.75)
Cost of completed beginning work in process			2190	(1600+590)
Started and completed in month	1785	12538	14323	(8502.1)+(85014.75)
Cost of goods completed in the period			16513	(2190+14323)

Option B is correct

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

PC Refinery uses a FIFO process costing system. For a particularperiod, its opening inventory consisted of 100 items (60 per centcomplete as to conversion costs) whose costs were $1,600 made up ofmaterial $300 and conversion cost $1,300. During the month, 1,000items were started and 950 were completed. Ending inventory of WIPwas one-third complete. There was no spoilage. Costs placed inprocess during the month were materials $1,785 and conversion costs$13,865. Materials are added at the halfway point. What is theamount of cost that would be allocated to goods completed in theperiod? (a) $16,900.(b) $16,513.(c) $16,150.(d) $14,913.