Question
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 107,000 units made up of the following: Amount Degree of Completion Prior department costs transferred in from the Molding Department $ 145,520 100 % Costs added by the Assembling Department Direct materials $ 96,300 100 % Direct labor 36,169 70 % Manufacturing overhead 19,012 50 % $ 151,481 Work in process, September 1 $ 297,001 During September, 507,000 units were transferred in from the Molding Department at a cost of $689,520. The Assembling Department added the following costs: Direct materials $ 437,670 Direct labor 164,241 Manufacturing overhead 74,808 Total costs added $ 676,719 Assembling finished 407,000 units and transferred them to the Finishing Department. At September 30, 207,000 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 90 % Direct labor 80 Manufacturing overhead 30 Required: (a) Prepare a production cost report using FIFO. (Round your answer to 2 decimal places.)
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