Chapter 17 Practice Problem #2

Truly Delightful Inc. manufactures widgets by a series of three processes. All

materials are added in the beginning of the process. The company uses the

First In, First Out (FIFO) method to calculate equivalent units.

The information for the month of March, 2020 is below.

Inventory in process, March 1: 700 units

Direct materials cost for 700 units $ 3,290

Conversion costs for 700 units, 20% completed $ 189

Total inventory in process, March 1 $ 3,479

Direct Materials Cost for March: 14,300 units $ 65,780

Conversion Costs for March $ 21,942

Total production costs to account for $ 91,201

Units Transferred Out in March include:

Units in process March 1: 14,600 units

Inventory in process March 31: 400 units

42% completed as to Conversion Costs

Use the above information to prepare the Cost of Production Report for the Month of

March 31, 2020. The report must include a correct title, columns that include correct

subheadings, and subtotals. Please use the Canvas Demonstration Video as an example.

Examples are also included in the textbook (See Exhibit 8).