Home and Garden Products Ltd manufactures a plant nutrient known as Garden Pride. The manufacturing process begins in the Grading Department when raw materials are started in process, upon completion of processing in the Grading Department; the output is transferred to the Saturati Department for the final phase of production. Here, the product is saturated with water and then dry .1 again. There is no weight gain in the process, and the water is virtually cost free. Home and Garden Products has recently adopted a JIT production approach, and work in process inventories has been reduced substantially. The following information about work in process inventories is available for the month of November:

The work in process inventory in the Saturating Department is estimated to be 50 per cent competed both at the beginning and end November. Costs of production for November are as follows:

The material produced in the Grading Department weighed 36 000 kilograms. The firm uses the FIFO method of process costing.
Required:
Prepare production reports for both the Grading and Saturating Departments for the month of November. Show supporting calculations. The answer should include:
1. Equivalent units of production (in kilograms).
2. Total manufacturing costs.
3. Cost per equivalent unit (kilograms).
4. Cost of ending work in process inventory. 5 Cost of goods completed and transferred out.

Transcribed Image Text:

30 November Quantity (kg) 1 November Quantity (kg) Cost Grading Department Saturating Department 1 600 $17 600* 2 000 Materials used Conversion Grading Department Saturating Department $265 680 $86 400 85 920