(Process Costing: FIFO Method) Red Coffee Company packages coffee beans for use in restaurants and coffee shops. Direct materials are added at the end of the process. The following data were presented for September:
|
Work in process, beginning inventory |
85,000 units |
|
Direct materials (0% complete) |
|
|
Conversion costs (90% complete) |
|
|
Started during current period |
300,000 units |
|
Completed and transferred out |
350,000 units |
|
Work in process, ending inventory |
|
|
Direct materials (0% complete) |
|
|
Conversion costs (65% complete) |
The following were costs reported by Red Coffee Company:
|
Beginning WIP inventory: |
|
|
Direct materials |
$85,000 |
|
Conversion costs |
$15,000 |
|
Added in September: |
|
|
Direct materials |
$320,000 |
|
Conversion costs |
$85,000 |
Determine the value of the finished goods inventory and the ending inventory for the month of September using the FIFO method of process costing.