In: Accounting
The following information was taken for the records of Hickory Manufacturing Company:
Beginning Work-in-Process Inventory |
800 |
Units Completed |
1,600 |
Ending Work-in-Process Inventory |
400 |
Ending Work-in-Process Inventory was 100% complete as the materials and 20% complete as the conversion costs.
Cost Information:
Materials |
Conversion |
|
Beginning Work-in-Process |
$6,400 |
$4800 |
Added during period |
9,600 |
12,000 |
Prepare a cost of production report based on the above information.
Please provide a step-by-step answer for the following problem:
Since the method to be used to prepare the cost of production report has not been specified in the question, average-cost method is being used to prepare the report.
The cost of production report will be prepared using average-cost method as follows:
Above figures have been calculated in the following manner: