P 7. Canned fruits and vegetables are the main products made by Good Foods, Inc.

All direct materials are added at the beginning of the Mixing Department’s process.

When the ingredients have been mixed, they go to the Cooking Department. There the mixture is heated to 100° Celsius and simmered for 20 minutes. When cooled, the mixture goes to the Canning Department for final processing. Throughout the operations, direct labor and overhead costs are incurred uniformly. No direct materials are added in the Cooking Department. Cost data and other information for the Mixing Department for January are as follows:

Direct Conversion Production Cost Data Materials Costs Mixing Department Beginning inventory $ 28,560 $ 5,230 Current period costs 450,000 181,200 Work in process inventory Beginning inventory Mixing Department (40% complete) 5,000 liters Ending inventory Mixing Department (60% complete) 6,000 liters Unit production data Units started during January 90,000 liters Units transferred out during January 89,000 liters Assume that no spoilage or evaporation loss took place during January.

Required 1. Using the FIFO costing method, prepare a process cost report for the Mixing Department for January.
2. Explain how the analysis for the Cooking Department will differ from the analysis for the Mixing Department.
Process Costing: One Process and Two Time Periods—FIFO Costing Method