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Choco Products produces cookies for which the company uses first-in, first-out (FIFO) process costing. The cookies go through two processes: mixing and baking. Materials are
Choco Products produces cookies for which the company uses first-in, first-out (FIFO) process costing. The cookies go through two processes: mixing and baking. Materials are added all at once during the mixing process. The mixing department had the following equivalent units during June: Direct Materials Conversion Costs Units in beginning work in process 250 115 Units completed and transferred out 7,200 7,200 Units in ending work in process 210 105 7,660 7,420 Production and other cost information for the mixing department follows for June: Direct material costs added during June $5,745 Conversion costs added during June $8,904 Costs in beginning inventory - conversion $1,484 Costs in beginning inventory - direct materials $1,532.
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