Question

Hanson Corp uses a process costing system. Materials are added at the start of the process. Beginning inventory for January consisted of 1,900 units (40% complete for conversion) with a cost of $15,000. 10,900 units were started and completed during January. On January 31, the inventory consisted of 510 units that were 70% complete for conversion. Material cost per unit was calculated to be $5.7; conversion cost per unit was calculated to be $7.2. What would be the cost transferred to finished goods using the FIFO method?

Answer 1

Here are some links on the FIFO Method.

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