Lala Land is a manufacturer of electronic dog whistles in a single processing department, assembly....
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Accounting
Lala Land is a manufacturer of electronic dog whistles in a single processing department, assembly. DMs are added at the start of the process and conversion costs are added evenly throughout the process. The following information for July is available:
Units:
WIP, July 1:
1,500 units; DMs 100%; conversion costs 60%
Started in July:
8,000 units
Completed in July:
7,500 units
WIP, July 31:
2,000 units; DMs 100%; conversion costs 35%
Costs:
WIP, July 1:
DM $8,000; conversion costs $35,300
Started in July:
DM $68,000; conversion costs $153,300
Required
a) Calculate the total costs transferred out and the cost of ending WIP under the weighted-average method.
b) Calculate the total costs transferred out and the cost of ending WIP under the FIFO method.
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