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, 80% complete		120,000 gallons
Units completed and transferred out		690,000 gallons
Units in process, July 31, 75% complete		80,000 gallons
Costs:
Work in process, July 1		$120,000
Costs added during July		1,471,500

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

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	120000
Units started	650000
Total units to account for	770000
Units to account for:	Units
Units started and completed	570000
From beginning WIP	120000
Units in ending WIP	80000
Total units to account for	770000
Equivalent units:
	Units
Started and completed	570000
To complete beginning WIP	24000	=120000*(1-80%)
Units in ending WIP	60000	=80000*75%
Total equivalent units	654000
Cost Information
Costs to account for:
	Dollars
Costs in beginning WIP	120000
Costs added by department	1471500
Total costs to account for	1591500
Cost per equivalent unit:	2.25	=1471500/654000
Costs accounted for:
	Total
Transferred out:
Units started and completed	1282500	=570000*2.25
Units in beginning work in process:
From prior period	120000
From current period	54000	=24000*2.25
Total cost transferred out	1456500
Goods in ending work in process	135000	=60000*2.25
Total costs accounted for	1591500