Final answer:
Using the FIFO method, the cost of goods transferred out for February is $202,950 for direct materials and $99,721 for conversion costs. The ending inventory for February is valued at $99,000 for direct materials and $48,620 for conversion costs.
Step-by-step explanation:
To calculate the cost of goods transferred out and the ending inventory using the FIFO method, we need to allocate the costs based on the order they entered the inventory. First, we calculate the cost per unit for direct materials and conversion costs. Then, we calculate the cost of goods transferred out by multiplying the units completed and transferred out by the respective cost per unit. Finally, we calculate the cost of the ending inventory by multiplying the units in the ending inventory by the respective cost per unit.
Cost per Unit:
Direct materials: ($8,455 + $156,347) / (45,100 units + 22,000 units) = $4.50 per unit
Conversion costs: ($79,865) / (45,100 units + 22,000 units) = $2.21 per unit
Cost of Goods Transferred Out:
Direct materials: 45,100 units * $4.50 per unit = $202,950
Conversion costs: 45,100 units * $2.21 per unit = $99,721
Cost of Ending Inventory:
Direct materials: 22,000 units * $4.50 per unit = $99,000
Conversion costs: 22,000 units * $2.21 per unit = $48,620