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In: Accounting

FIFO Method, Single Department Analysis, One Cost Category Hatch Company produces a product that passes through...

FIFO Method, Single Department Analysis, One Cost Category

Hatch Company produces a product that passes through three processes: Fabrication, Assembly, and Finishing. All manufacturing costs are added uniformly for all processes. The following information was obtained for the Fabrication Department for June:

  1. Work in process, June 1, had 90,000 units (40 percent completed) and the following costs:
    Direct materials $72,740
    Direct labor 109,000
    Overhead 36,000
  2. During the month of June, 180,000 units were completed and transferred to the Assembly Department, and the following costs were added to production:
    Direct materials $198,000
    Direct labor 144,000
    Overhead 162,000
  3. On June 30, there were 45,000 partially completed units in process. These units were 80 percent complete.

Required:

Prepare a cost of production report for the Fabrication Department for June using the FIFO method of costing. Round the cost per equivalent unit to the nearest cent.

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Expert Solution

ekkarill92 answered 1 year ago
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