Refer to the information in Problem 20-3B. Assume that Switch uses the FIFO method of process costing. The units started and completed for January total 210,000.

Required

1. Prepare the Cutting department’s production cost report for January using FIFO. Round cost per EUP to three decimals.
2. Prepare the January 31 journal entry to transfer the cost of units from Cutting to Assembly.

Data From Exercise 20-3B

Switch Co. manufactures a single product in two departments: Cutting and Assembly. Information for the Cutting process for January follows.

Required

1. Prepare the Cutting department’s production cost report for January using the weighted average method.
2. Prepare the January 31 journal entry to transfer the cost of units from Cutting to Assembly.

Transcribed Image Text:

Direct Materials Conversion Beginning work in process inventory Direct materials $ 7,500 Units Percent Complete Percent Complete Conversion.. 49,840 $ 57,340 Beginning work in process inventory... Units started this period..... 10,000 75% 60% Costs added this period 250,000 Direct materials 112,500 Units completed and transferred out... 220,000 Conversion . 616,000 728,500 Ending work in process inventory.... 40,000 50% 30% Total costs to account for. $785,840