Discuss what is the cost of the pillows in ending inventory

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Felicity Feathers Inc. makes feather pillows. The manufacturing takes place in two departments: the sewing department and the stuffing department. The sewing department cuts the cover for the pillow from cotton fabric, sews it together and adds a zipper to allow input of the feather stuffing. The stuffing department fills the pillow covers with feather down, and inspects and packages the pillows for sale. Felicity uses process costing to determine its product costs. All materials for each department are added at the beginning of the process, and conversion costs are added evenly throughout. The following details are available for June production in the sewing department. Beginning inventory Number of pillows 480 Direct materials $5,328 Conversion cost $1,300 Per cent completion 25% Month of June activity Number of pillows started 5,600 Direct materials added $61,600 Direct labour added $31,056 Manufacturing overhead $26,624 Number of pillows completed 5,440 Per cent completion of ending inventory 70% The company uses the first in, first out (FIFO) method. What is the cost of the pillows in ending inventory in the sewing department for the month of June?

a) $10,873

b) $11,533

c) $11,520

d) $12,230

 

Reference no: EM131792889

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