How much is the cost of transferred out? Holiday Company produces dog food. All direct materials are entered at the beginning of theprocess. Some shrinkage occurs during the production process, but management considersany shrinkage of up to 5% of started during the month to be normal. May 2019 data are asfollows:Beginning WIP (45% complete)Started during the month36,000 pounds120,000 pounds126,000 pounds22,000 poundsTransferred to FGEnding WIP (70% incomplete)Beginning work in process: Materials – P24,000; Conversion – P9,800. Current period costs:Materials – P86,640; Conversion - P54,144. The company uses FIFO Method.How much is the cost of transferred out?

Process costing is used where there are many processes in the same line of business for…

Holiday Company produces dog food. All direct materials are entered at the beginning of process. Some shrinkage occurs during the production process, but management consider any shrinkage of up to 5% of started during the month to be normal. May 2019 data are as follows: 36,000 pounds 120,000 pounds 126,000 pounds 22,000 pounds Beginning WIP (45% complete) Started during the month Transferred to FG Ending WIP (70% incomplete) Beginning work in process: Materials - P24,000; Conversion – P9,800. Current period costs: Materials – P86,640; Conversion – P54,144. The company uses FIFO Method. How much is the cost of transferred out?

Holiday Company produces dog food. All direct materials are entered at the beginning of process. Some shrinkage occurs during the production process, but management consider any shrinkage of up to 5% of started during the month to be normal. May 2019 data are as follows: 36,000 pounds 120,000 pounds 126,000 pounds 22,000 pounds Beginning WIP (45% complete) Started during the month Transferred to FG Ending WIP (70% incomplete) Beginning work in process: Materials - P24,000; Conversion – P9,800. Current period costs: Materials – P86,640; Conversion – P54,144. The company uses FIFO Method. How much is the cost of transferred out?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 13E: Eyring Manufacturing produces a component used in its production of washing machines. The time to...

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