A Inc., employs a process costing system. Direct materials are added at the beginning of the process. Here is the information about July’s activities:
On July 1
Beginning inventories 850 units, 60% complete
Direct materials cost $5,000
Conversion Costs $4,000
During July
Number of units started 15,000
Direct materials added $155,000
Conversion costs added $83,520
On July 31
Ending Inventories 1,600 units, 40% complete
Using FIFO method, (A) the number of units started and completed in July was? (B) the number of equivalent units of conversion costs was? (C) the cost of goods completed and transferred out during July was?
For A I came up with 14,250 but not sure if I am doing the process correctly please advise.
Thank you in advance for your help!