Question
Four Seasons Company is a contract manufacturer for the Mayon Dressing Company. Four Seasons uses a FIFO method to account for its production of its
Four Seasons Company is a contract manufacturer for the Mayon Dressing Company. Four Seasons uses a FIFO method to account for its production of its salad dressing. All materials are added at the start of the process. Mayon provides reusable vats to Four Seasons for the completed product to be shipped to Mayon for bottling so Four Seasons incurs no packaging costs. April 2013prodcution and cost data for Four Seasons Company is as follows: Gallons of dressings in beginning inventory Gallons transferred out to during April Gallons of dressing in ending inventory Costs of beginning inventory: Direct materials Direct Labor Overhead Cost incurred in April: Direct materials Direct Labor Overhead 36,000 242,000 23,500 180,000 26,100 70,300 1,131,435 451,728 773,330 The beginning and ending inventories had the following stages of completion for labor and overhead: Beginning Inventory Ending Inventory Direct labor Overhead 35% 60% 25% 30%
What is the total cost of the completed units in April? a. 2,481,788 b. 2,814,800 c. 2,482,788 d. 2,481,780
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