Beginning Inventory, Purchases and Sales Data for Widgets Are as Follows

question 17

Essay

Beginning inventory, purchases and sales data for widgets are as follows:

Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculates the cost of merchandise sold and ending inventory using LIFO.

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Definitions:

Prime Costs

The total cost of direct materials and direct labor incurred in the production of goods.

Conversion Costs

The combination of labor costs and overhead costs that are incurred to convert raw materials into finished goods.

Direct Labor Cost

The total cost of wages paid to workers directly involved in the production of goods or services, excluding benefits and overtime.

Manufacturing Process

The series of operations involved in the production of goods, encompassing everything from raw materials to finished product stages.