EXERCISE 7-3 COST OF PRODUCTION REPORT-FIFO COSTING The XYZ Corp. uses a process cost system. Since the beginning of the operation, it has used weighted average costing to account for beginning work-in-process inventory The cost of production report for March for Department 182 appears below. Manage- ment is contemplating switching to the fifo costing method. Required: Prepare the cost of production report for March for Department 182 assuming that fifo was being used, The XYZ Corp. Cost of Production Report- Department 182 for the Month of March QUANTITIES Units to account for: Beginning units in process (70% complete as to conversion costs) Units received from preceding department Units added to production Units accounted for Units transferred to finished goods inventory Ending units in process (50% complete as to conversion costs) 4,300 21,700 4,000 30,000 23,600 6,400 30,000 EQUIVALENT PRODUCTION Transferred to finished goods inventory Ending units in process DIRECT MATERIALS 23,600 0 23,600 CONVERSION COSTS 23,600 3.2007 26.800 Direct materials added at end of process 16,400 x 50% 326 PART 1: PRODUCT COSTING COSTS TO ACCOUNT FOR UNITS TOTAL COST EQUIVALENT EQUIVALENT PRODUCTION UNIT COST $ 21,740 60.760 4,300 21,700 4,000 30,000 $ 82,500 30.000 $2.75 Costs from preceding department: Work in process inventory beginning Transferred in during period Units added to production Adjusted units and unit cost Costs added by department: Direct materials Work-in-process inventory- beginning Added during the period Total Direct labor Work-in-process inventory- beginning Added during the period Total Factory overhead Work-in-process inventory- beginning Added during the period Total Total costs to account for 5 0 24,000 $ 24,000 23,600 1,017 $ 2,150 21,970 $ 24,120 26,800 900 $ 1,200 18,900 $ 20,100 5150,720 26,800 750 $5.417 $127 841 COSTS ACCOUNTED FOR Transferred to finished goods inventory (23,600 x $5.417) Work in process inventory ending Costs from preceding department (6,400 $2.75) Direct materials Direct labor (6,400 x 5.90 x 50%) Factory overhead (6,400 x 5.75 X 50%) Total costs accounted for $17,600 0 2,880 2,400 22,880 5150,721