Transferred in costs, FIFO method. Suppose that Asaya uses the FIFO method instead of the weighted average method in all of its departments. The only changes to under the FIFO method are that total transferred in costs of beginning work in process on June 1 are $60,000 (instead of $75,000) and total transferred in costs added during June are $130,800 (instead of $142,500).Using the FIFO method. Note that you first need to calculate equivalent units of work done in the current period (for transferred in costs, direct materials, and conversion costs) to complete beginning work in process, to start and complete new units, and to produce ending work in process.
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A |
B |
C |
D |
E |
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1 |
Physical Units (tons) |
Transferred In Costs |
Direct Materials |
Conversion Costs |
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2 |
Work in process, beginning inventory (June 1) |
75 |
$ 75,000 |
$ 0 |
$30,000 |
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3 |
Degree of completion, beginning work in process |
100% |
0% |
60% |
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4 |
Transferred in during June |
135 |
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5 |
Completed and transferred out during June |
150 |
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6 |
Work in process, ending inventory (June 30) |
60 |
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7 |
Degree of completion, ending work in process |
100% |
0% |
75% |
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8 |
Total costs added during June |
$142,500 |
$37,500 |
$78,000 |