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, 60% complete		18,000 gallons
Units completed and transferred out		141,000 gallons
Units in process, July 31, 45% complete		16,000 gallons
Costs:
Work in process, July 1		$36,000
Costs added during July		398,460

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	18000
Units started	139000
Total units to account for	157000
Units to account for:
	Units
Units started and completed	123000
From beginning WIP	18000
Units in ending WIP	16000
Total units to account for	157000
Equivalent units:	Units
Started and completed	123000
To complete beginning WIP	7200
Units in ending WIP	7200
Total equivalent units	137400
Cost Information
Costs to account for:
	Dollars
Costs in beginning WIP	$36,000.00
Costs added by department	$398,460.00
Total costs to account for	$434,460.00
Cost per equivalent unit	$2.90
Costs accounted for:
	Total
Transferred out:
Units started and completed	123,000
Units in beginning work in process:	18,000
From prior period	$36,000.00
From current period	$377,580.00
Total cost transferred out	$413,580.00
Goods in ending work in process	$20,880.00
Total costs accounted for	$434,460.00