Refer to the data in Problem 6.38.
In Problem 6.38
Healthway uses a process-costing system to compute the unit costs of the minerals that it produces. It has three departments: Mixing, Tableting, and Bottling. In Mixing, the ingredients for the minerals are measured, sifted, and blended together. The mix is transferred out in gallon containers. The Tableting Department takes the powdered mix and places it in capsules. One gallon of powdered mix converts to 1,600 capsules. After the capsules are filled and polished, they are transferred to Bottling where they are placed in bottles, which are then affixed with a safety seal and a lid and labeled. Each bottle receives 50 capsules.
During July, the following results are available for the first two departments (direct materials are added at the beginning in both departments):

Overhead in both departments is applied as a percentage of direct labor costs. In the Mixing Department, overhead is 200 percent of direct labor. In the Tableting Department, the overhead rate is 150 percent of direct labor.
Required:
Prepare a production report for each department using the FIFO method.

Transcribed Image Text:

Mixing Tableting ngai Physical units Costs: 5 gallons 4,000 capsules S 120 128 S 32 0 Direct materials Direct labor Overhead Transferred in 140 Current production: Transferred out Ending inventory Costs: 125 gallons198,000 capsules $3,144 Direct materials Transferred in Direct labor Overhead S 1,584 4,096 1,944 Percentage of completion: Beginning inventory Ending inventory 40% 50 50% 40