Question:
Cantach Tool Company manufactures a product in two departments, Cutting and Assembly. The product is cut out of sheet metal, bent to shape, and painted in the Cutting Department. Then it is transferred to the Assembly Department where purchased parts are added to the unit. A process cost system with a fifo cost flow assumption is used to account for work in process inventories. Data related to November operations in the Assembly Department are:
Required:
Prepare a November cost of production report on a fifo basis for the Assembly Department.
Transcribed Image Text:
Units in beginning inventory (50% materials, 40% labor and overhead) Units received from the Cutting Department this period...... Units transferred to Finished Goods inventory this period... Units in ending inventory (90% materials, 80% labor and overhead) 1,200 2,800 3,000 1,000 Beginning Added Inventory This Period Costs charged to the department Costs from the preceding department... Materials $17.280 5,550 2,400 3,600 $40,600 29,700 16,932 25,398 Factory overhead ..