The Matsui Lubricants plant uses the FIFO method to account forits work-in-process inventories. The accounting records show thefollowing information for a particular day: Beginning WIP inventoryDirect materials $ 951 Conversion costs 452 Current period costsDirect materials 14,690 Conversion costs 11,928 Quantityinformation is obtained from the manufacturing records and includesthe following: Beginning inventory 400 units (60% complete as tomaterials, 55% complete as to conversion) Current period unitsstarted 5,200 units Ending inventory 1,400 units (40% complete asto materials, 20% complete as to conversion)
(1) Compute the equivalent units for the materials andconversion cost calculations.
(2) Compute the cost per equivalent unit for direct materialsand for conversion costs using the FIFO method. (Round your answersto 2 decimal places.)
(3)Compute the cost of goods transferred out and the endinginventory using the FIFO method. (Do not round intermediatecalculations.)
