Atlantic Manufacturing Company uses process costing. 50% of the materials are added at the beginning of the process with the remaining materials added at the mid point of the process. Atlantic has stressed quality control during the past year and has reduced their spoilage to zero units. The conversion process occurs evenly throughout the manufacturing period. The cost of the beginning work-in-process in the month of May is $1,780,000, including $900,000 of input of materials, 200,000 units, and $880,000 for conversion costs. The beginning work-in-process is 40% complete.
During May, the input includes the $6,400,000 for materials and $9,360,000 for conversion costs. The amount of good units finished is 800,000 units. In addition the amount of ending work-in-process in May is 100,000 units with 60% complete.
Required: Use FIFO method to find out:
1) The current costs to complete the beginning inventory
2) The cost of units finished during the month of May
3) The cost of ending work-in-process