In March Burlywood had the following results Production Unit

In March, Burlywood had the following results:

Production:

Units in process, March 1, 80% complete

36,000 units

Units completed and transferred out

120,000 units

Units in process, March 31, 40% complete

44,500 units

Costs:

Work in process, March 1

$11,600

Costs added during March

$32,000

Determine the total cost to be assigned using the first-in, first-out costing method.

a. $55,200

c. $48,080

d. $52,320

Solution

Answer

c ) 48080

Units

Cost

In process on March-1 80%

36,000

11,600

9,280

complete

120,000

32,000

21,000

In process on March 31 40%

44,500

17,800

48080