The Cutting Department is the first stage of Company X's production cycle. BWIP for this
department was 24% complete as to conversion costs. EWIP was 55% complete. Information as to conversion costs in the Cutting Department for January is presented in the next column.

Using the FIFO method, what was the conversion cost of WIP in the Cutting Department on January 31 (assuming no spoilage)?

Question

The Cutting Department is the first stage of Company X's production cycle. BWIP for this 
 department was 24% complete as to conversion costs. EWIP was 55% complete. Information as to conversion costs in the Cutting Department for January is presented in the next column. 
  
                                                        
 Using the FIFO method, what was the conversion cost of WIP in the Cutting Department on January 31 (assuming no spoilage)?

Answer

$ {=(1316*100)/((1-24/100)*(102*100)+55/100*(102*100+1617*100-1411*100)+(1411*100-102*100))*(55/100*(102*100+1617*100-1411*100))}

Answer

$ 8000

Answer

$ {=1316*100/((1-24/100)*102*100+55/100*(102*100+1617*100-1411*100)+(1411*100-102*100))*(102*100+1617*100-1411*100)}

Answer

None of the other options is correct.

Answer

$ {=(80*100/(102*100*24/100))*(55/100*(102*100+1617*100-1411*100))}

	Units	CC
WIP at January 1	10200	$8000
Units started in January	161700
Units completed and transferred out	141100
Costs incurred during January		$131600

Crowdly

The Cutting Department is the first stage of Company X's production cycle. BWIP ...

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