Question

(Appendix 6A) FIFO; Production Report

Aztec Inc. produces soft drinks. Mixing is the first department, and its output is measured in gallons. Aztec uses the FIFO method. All manufacturing costs are added uniformly. For July, the mixing department provided the following information:

Production:
Units in process, July 1, 40% complete		20,000 gallons
Units completed and transferred out		142,000 gallons
Units in process, July 31, 55% complete		24,000 gallons
Costs:
Work in process, July 1		$40,000
Costs added during July		397,440

Required:

Prepare a production report.

Aztec Inc. Mixing Department
Production Report
For the Month of July (FIFO Method)
Unit Information
Physical flow:
Units to account for:	Units
Units in beginning WIP
Units started
Total units to account for
Units to account for:
	Units
Units started and completed
From beginning WIP
Units in ending WIP
Total units to account for
Equivalent units:	Units
Started and completed
To complete beginning WIP
Units in ending WIP
Total equivalent units
Cost Information
Costs to account for:
	Dollars
Costs in beginning WIP
Costs added by department
Total costs to account for
Cost per equivalent unit
Costs accounted for:
	Total
Transferred out:
Units started and completed
Units in beginning work in process:
From prior period
From current period
Total cost transferred out
Goods in ending work in process
Total costs accounted for

Answer 1

Prepare a production report.

Aztec Inc. Mixing Department
Production Report
For the Month of July (FIFO Method)
Unit Information
Physical flow:
Units to account for:	Units
Units in beginning WIP	20000
Units started	146000
Total units to account for	166000
Units to account for:
	Units
Units started and completed	122000
From beginning WIP	20000
Units in ending WIP	24000
Total units to account for	166000
Equivalent units:	Units
Started and completed	122000
To complete beginning WIP	12000
Units in ending WIP	13200
Total equivalent units	147200
Cost Information
Costs to account for:
	Dollars
Costs in beginning WIP	40000
Costs added by department	397440
Total costs to account for	437440
Cost per equivalent unit	2.7
Costs accounted for:
	Total
Transferred out:
Units started and completed	329400
Units in beginning work in process:
From prior period	40000
From current period	32400
Total cost transferred out	401800
Goods in ending work in process	35640
Total costs accounted for	437440