D, Inc., uses three departments to produce a detergent. The Finishing Department is the third and last step before the product is transferred to storage. All materials needed to give the detergent its final composition are added at the beginning of the process in the Finishing Department. The company uses FIFO costing. The following data for the Finishing Department for October have been made available:
Production data:
In process, October 1 (labor and factory overhead, 75% complete) 10,000 litres Transferred in from preceding department 40,000 litres Finished and transferred to storage 35,000 litres In process, October 31 (labor and factory overhead, 50% complete)15,000 litres
Additional data:
Work-in-process inventory, October 1:
Cost from preceding department $38,000Cost from this department: 21,500 Materials 39,000 Labor 42,000 Factory overhead $140,500 Transferred in during October $140,500
Cost added in this department:
Materials $70,000Labor 162,500Factory overhead 130,000 $362,500
Required:
Calculate the cost of the units transferred out to finished goods inventory and the value of the ending WIP under the FIFO method
Please reply ASAP
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