Guthrie Corporation The following information is available for Guthrie Corporation for the current year:
All materials are added at the start of production.
Refer to Guthrie Corporation.Assume that the FIFO EUP cost for material and conversion are $1.50 and $4.75,respectively.Using FIFO what is the total cost assigned to the units transferred out?

Question

Guthrie Corporation The following information is available for Guthrie Corporation for the current year:
 All materials are added at the start of production.
Refer to Guthrie Corporation.Assume that the FIFO EUP cost for material and conversion are $1.50 and $4.75,respectively.Using FIFO what is the total cost assigned to the units transferred out?

Quizplus · Accepted Answer

To calculate the cost assigned to the units transferred out using FIFO, we need to use the FIFO EUP cost, which is $1.50 for material and $4.75 for conversion. The number of units transferred out is 95,000. Therefore, the total cost assigned to the units transferred out is:
(60,000 units x $1.50) + (60,000 units x $4.75) + (35,000 units x $1.50) + (35,000 units x $4.75) = $414,194. Therefore, the best choice is A.

Guthrie Corporation the Following Information Is Available for Guthrie Corporation