C5.44 LO 5.3 5.7 (appendix) Sequential production departments; FIFO method; JIT: manufacturer Home and Garden Products Ltd manufactures a plant nutrient known as Garden Pride. The manufacturing process begins in the grading department when raw materials are started in process. Upon completion of processing in the grading department, the output is transferred to the saturating department for the final phase of production. Here, the product is saturated with water and then dried again. There is no weight gain in the process, and the water is virtually cost free. Home and Garden Products has recently adopted a just-in-time (JIT) production approach, and work in process inventories have been reduced substantially. The following information about work in process inventories is available for November: 1 November 30 November Quantity (kg) Cost Quantity (kg) Grading department Saturating department *Includes $3750 in saturating department conversion costs. - 1600 $17600* 2000 The work in process inventory in the saturating department is estimated to be 50 per cent complete both at the beginning and end of November. Costs of production for November are as follows: Grading department Saturating department Materials used $265680 Conversion $86400 85920 The material produced in the grading department weighed 36000 kilograms. The firm uses the FIFO method of process costing.

Required Prepare production reports for both the grading and saturating departments for November. Show supporting calculations. The answer should include: 1. equivalent units of production (in kilograms) 2. total manufacturing costs 3. cost per equivalent unit (kilograms) 4. cost of ending work in process inventory 5. cost of goods completed and transferred out.