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Calculate the materials cost of the finished goods | Accounting homework help

Paper Details

During the most recent month, Fabricators Inc. started 3,000 units, finished 3,100 units, and incurred conversion costs totaling $290,160. The finished goods ending inventory consisted of 50 units. The RIP ending inventory contained partially processed materials for 20 units, 50% converted, plus unprocessed raw materials sufficient to produce 200 units.
The last semimonthly EDI payment to the supplier covered materials shipments sufficient to produce 1,400 units of output, with a total cost of $420,000.
(1) Calculate the materials cost of the finished goods ending inventory, assuming fifo costing is used.
(2) Calculate three different amounts for conversion cost per unit by dividing the month’s conversion costs by three different counts of physical units:
(a) The number started;
(b) The number finished;
(c) The number finished plus the number of partially converted units in RIP ending inventory (use only physical units, not a calculation of equivalent units).
(3) Calculate the conversion cost component of the finished goods ending inventory. Provide three different answers using the three results from requirement 2.
(4) Using the results from requirements 1 and 3, calculate the lowest and highest of the three amounts that might be reported for the total cost of the finished goods ending inventory. Calculate the dollar amount of difference between the lowest and highest answers. Express the difference as a percent of the lowest answer, rounded to the nearest tenth of a percent.

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