Prepare Production Cost Report-FIFO Method: The following information appears in the records of the Furlong Production Company:

Required: The ending inventory has 1,000 units, which are 45 percent complete with respect to Department No. 2 costs and 100 percent complete for prior department costs. Prepare a production cost report, using FIFO. (For an example, see Illustration 8-9.)

Transcribed Image Text:

Work in process inventory-Department No. 2: Beginning inventory: Prior department costs Department No. 2 costs 3,000 units (100 percent complete) 20 percent complete $ 4,800 1,080 Prior department costs 10,850 7,000 units (100 percent complete) Department No. 2 costs 18,585 Current work: