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Douglas Toys is a manufacturer that uses FIFO costing method to account for costs of production. It produces a plastic toy in three separate departments:
Douglas Toys is a manufacturer that uses FIFO costing method to account for costs of production. It produces a plastic toy in three separate departments: Molding, Assembling, and Finishing. The following information was obtained for the Assembling Department for the month of September. |
Work in process on September 1 had 104,000 units made up of the following: |
Amount | Degree of Completion | |||||
Prior department costs transferred in from the Molding Department | $ | 138,320 | 100 | % | ||
Costs added by the Assembling Department | ||||||
Direct materials | $ | 88,400 | 100 | % | ||
Direct labor | 31,528 | 60 | % | |||
Manufacturing overhead | 21,264 | 50 | % | |||
$ | 141,192 | |||||
Work in process, September 1 | $ | 279,512 | ||||
During September, 504,000 units were transferred in from the Molding Department at a cost of $670,320. The Assembling Department added the following costs: |
Direct materials | $ | 393,720 | ||||||
Direct labor | 159,852 | |||||||
Manufacturing overhead | 95,036 | |||||||
Total costs added | $ | 648,608 | ||||||
Assembling finished 404,000 units and transferred them to the Finishing Department. |
At September 30, 204,000 units were still in work-in-process inventory. The degree of completion of work-in-process inventory at September 30 was as follows: |
Direct materials | 80 | % | ||||||
Direct labor | 70 | |||||||
Manufacturing overhead | 30 | |||||||
Required: | |
(a) | Prepare a production cost report using FIFO. (Round your answer to 2 decimal places.) |
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