Computing equivalent units and cost flows under process costing (Appendix 2.1). Omar Production Company has a process cost accounting system. Omar incurred material, direct labor, and manufacturing overhead costs evenly during processing.

On September 1, the firm had 20,000 units in process, 40 percent complete, with the following accumulated costs:

During September. Omar completed 90.000 units. The units in ending inventory were, on average, 40 percent complete.
Prepare a production cost report such as the one in Exhibit 2.1 1 using FIFO.

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Material Direct Labor Manufacturing Overhead $156,000 80,000 60,000 During September. Omar started 110.000 units in process and incurred the follow- ing costs Material Direct Labor Manufacturing Overhead $1,244,000 980.000 735,000