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Question - The following data have been compiled for Lily Enterprises Ltd for the month of August. Conversion occurs uniformly throughout the production process.
Work in process, 1 August - 13,000 units
Direct material (100% complete)
$23,000
Conversion (10% complete)
$6,000
Balance in work in process, 1 August
$29,000
Units started during August
168,000
Units completed during August and transferred out to finished goods inventory
127,000
Work in process, 31 August:
Conversion (36% complete)
Costs incurred during August:
Direct material
$171,000
Conversion costs:
Direct labour
$72,000
Manufacturing overhead
$291,000
$363,000
Total production costs incurred during August
$534,000
Required - Calculate the amount for cost of goods completed and transferred out during August.
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