Discuss the below:
Q: The Matsui Lubricants plant uses the FIFO method to account for its work-in-process inventories. The accounting records show the following information for a particular day: Beginning WIP inventory Direct materials $ 985 Conversion costs 572 Current period costs Direct materials 27,275 Conversion costs 18,722 Quantity information is obtained from the manufacturing records and includes the following: Beginning inventory 850 units (70% complete as to materials, 60% complete as to conversion) Current period units started 6,000 units Ending inventory 1,600 units (50% complete as to materials, 20% complete as to conversion) Compute the cost of goods transferred out and the ending inventory using the FIFO method.