Below is the cost assignment report for a FIFO process costing system. The report is only partially complete.
|Cost Assignment Report|
|EU||Cost per EU||Direct Materials||Conversion costs|
|Costs in beg WIP inventory||\$15,800||\$5,000|
|Costs to complete B:|
|Started and completed:|
At the beginning of the period, there were 10,000 units in beginning work in process. All materials are added at the beginning of the period and conversion costs are added evenly throughout production. Beginning units are 40% complete with respect to conversion costs.
What can you learn about costs from this report?