Process Costing using First-in-First Out Case Study
Process Costing using First-in-First Out (FIFO)
Crone Corporation uses the FIFO method in its processing costing system. The following data concern the company’s Assembly Department for the month of October.
| Cost in beginning work in process inventory | $1,920 |
| Units started and completed this month | 3,130 |
| Materials | Conversion | |
| Cost per equivalent unit | $9.50 | $20.40 |
| Equivalent units required to complete the units in
beginning work in process inventory |
360 | 140 |
| Equivalent units in ending work in process
inventory |
330 | 264 |
Required:
Determine the cost of ending work in process inventory and the cost of units transferred out of the department during October using the FIFO method.
