2) Shining Star Company uses an automated process to clean and polish its souvenir items. For March, the company had the following activities:

Beginning work in process inventory	3,000 items, 1/3 complete with regards to conversion costs
Units placed in production	12,000 units
Units completed	9,000 units
Ending work in process inventory	6,000 items, 2/5 complete with regards to conversion costs
Cost of beginning work in process	$2,500
Direct material costs, current	$9,000
Conversion costs, current	$8,320

Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process.

Required: Prepare a production cost worksheet using the FIFO method.

PRODUCTION COST WORKSHEET

Flow of production

Physical Units

Direct Materials

Conversion

Work in process, beginning

3,000

Started during period

12,000

To account for

15,000

Units completed

Work in process, beginning

Started and completed

Work in process, ending

15,000

Costs

Totals

Direct Materials

Conversion

Work in process, beginning

$2,500

Costs added during period

17,320

Total costs to account for

$19,820

Divided by equivalent units

Equivalent unit costs

Assignment of costs

Work in process, beginning

Completion of beginning

Total beginning inventory

Started and Completed

Total costs transferred out

Work in process, ending

Direct materials

Conversion

Costs accounted for

$19,820 PLease show all formulas on how you get numbers. This will be in an excel sheet