In: Accounting
The company uses the FIFO method in its process costing system. Production data for the Mashing Department (first stage) for the month of January appears below:
Production data:
Units (gallons) in process, January 1 (materials 100% complete;
conversion 90% complete). . . . . . . . . . . . . . . . . . . . . . 20,000
Units started into production. . . . . . . . . . . . . . . . . . . . . . . . . . 390,000
Units in process, January 31 (materials 75% complete;
conversion 25% complete) . . . . . . . . . . . . . . . . . . . . . . 40,000
Cost data:
Work in process inventory, January 1:
Materials cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,000
Conversion cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $13,000
Cost added during the month:
Materials cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $495,000
Conversion cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $253,000
REQUIRED:
Prepare a FIFO production report for the Mashing Department for Windy City Brewing Co. for the month ended January 31, 2018.
Statement of Equivalent production | |||||||
Particulars | Direct Materials | %completion | Equivalent mat | Conversion | %completion | Equivalent Conv | Total |
Opening WIP | 20,000.00 | 0% | - | 20,000.00 | 10% | 2,000.00 | |
Units started and completed (390,000 - 40,000) | 350,000.00 | 100% | 350,000.00 | 350,000.00 | 100% | 350,000.00 | |
ending WIP | 40,000.00 | 75% | 30,000.00 | 40,000.00 | 25% | 10,000.00 | |
Equivalent Units | 380,000.00 | 362,000.00 | |||||
Current Month Costs | 495,000.00 | 253,000.00 | 748,000.00 | ||||
Cost per Equivalent units | 1.30 | 0.70 | |||||
Ending WIP Units | 30,000.00 | 10,000.00 | |||||
Cost of ending WIP | 39,078.95 | 6,988.95 | 46,067.90 | ||||
Units transferred | 350,000.00 | 352,000.00 | |||||
Cost incurred on units transferred | 455,921.05 | 246,011.05 | 701,932.10 | ||||
Coststo Account for: | |||||||
Opening WIP | - | ||||||
CostsTransferred in | 748,000.00 | ||||||
Total Coststo Account for | 748,000.00 | ||||||
CostsAccounted for | |||||||
Costscompleted and Transferred Out | 701,932.10 | ||||||
Ending WIP | 46,067.90 | ||||||
Total Costsaccounted for | 748,000.00 | ||||||