Question

Skittles Company's inventory on March 1 and the costs charged to Work in Process—Dipping Department during March are as follows: Beginning work in process, 500 units, 60% completed $ 3,460 From Sugar Mixing Department, 10,000 units (direct materials) 36,300 Direct labor incurred 7,960 Factory overhead incurred 12,500 ​ During March, all direct materials were transferred from the Mixing Department, the units in process at March 1 were completed, and of the 10,000 units entering the department, all were completed except 1,200 units that were 25% completed as to conversion costs. Inventories are costed by the first-in, first-out method. ​ Prepare a cost of production report for March. Round unit cost data to four decimal places and total cost to nearest cent. You do not need to enter dollar signs ($). Be sure to double-check your answers. A typo will be marked as incorrect. M&M Company Cost of Production Report - Dipping Department For the Month Ended March 31 Unit Information Units charged to production: Inventory in Process, March 1 500 Received from Mixing Dept Total units accounted for by Dipping Department Units to be assigned Cost: Whole Units Direct Materials (Equivalent Units) Conversion Costs (Equivalent Units) Inventory in Process, March 1 (60% Complete) 500 Started and Completed in March 8,800 Transferred to Finished Goods in March 9,000 Inventory in Process, March 31 (70% Complete) 1,200 Total units to be assigned costs 10,500 9,300 Cost Information: Direct Materials Conversion Costs per equivalent unit: Total costs for March in Dipping Department $36,300 Total equivalent units Cost per equivalent unit $2.20 Costs assigned to Production Total Costs Inventory in process, March 1 $3,460 Costs incurred in March Total costs accounted for by Dipping Department $ Costs Allocated to completed and partially completed units: Direct Materials Cost Conversion Costs Total Costs Inventory in process, March 1, balance $ To complete inventory in process, March 1 $ $440 Started and completed in March 31,944 Transferred to finished goods in March $55,204 Inventory in process, March 31 4,356

Total costs assigned by Dipping Department $60,220

Answer 1

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Workings
Goods transferred out in March	Whole Units
Inventory in process March 1	500.00
Add: Units started into production	10,000.00
Less: Inventory in process, March 31	1,200.00
Goods transferred out in March	9,300.00	A
Started and completed in March	Whole Units
Goods transferred out in March	9,300.00
Less: Inventory in process March 1	500.00
Started and completed in March	8,800.00

FIFO Method
Cost of Production Report
For the Month Ended March 31
Flow of units:
Units charged to production:	Physical Units
Inventory in process March 1	500.00
Units started into production	10,000.00
Total units accounted for by the Department	10,500.00
		Equivalent Units
Units to be assigned costs:	Physical Units	Materials	Conversion
Inventory in process March 1	500.00	-	200.00	See note A
Started and completed in March	8,800.00	8,800.00	8,800.00
Inventory in process, March 31	1,200.00	1,200.00	300.00	This is closing units multiplied by % of completion
Total units to be assigned costs:	10,500.00	10,000.00	9,300.00
Flow of costs:
Costs to be accounted for	Total costs	Materials	Conversion
Costs in beginning WIP Inventory	3,460.00
Current period costs	56,760.00	36,300.00	20,460.00
Total costs to be accounted for	60,220.00	36,300.00	20,460.00
Costs per equivalent unit	Total	Materials	Conversion
Total costs for March	56,760.00	36,300.00	20,460.00
Total equivalent units		10,000.00	9,300.00
Cost per equivalent unit	5.83	3.63	2.20

Costs assigned to production:	Total	Materials	Conversion
Inventory in process March 1	3,460.00
Complete Beginning WIP	440.00	-	440.00
Started and completed in March	51,304.00	31,944.00	19,360.00
Inventory in process, March 31	5,016.00	4,356.00	660.00
Total costs assigned by the Department	60,220.00