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Fresh Breath is a company that manufactures mouthwash and uses the process costing. The process involves mixing 3 ingredients. Ingredient 1 is added at the
Fresh Breath is a company that manufactures mouthwash and uses the process costing. The process involves mixing 3 ingredients. Ingredient 1 is added at the beginning of the period. Ingredient 2 is added at 50% of the process and ingredient 3 is added at the end of the process. Conversion costs take place evenly throughout the whole process. The following appeared in their records: 1. Opening work in process (65% completed) was 9000 units. 2. Units added during the process amounted to 150000 units. 3. Closing work in process ( 70% completed) was 6500 units. The total costs were as follows: Required: Using FIFO Method: Prepare the first four (4) steps of the Production and Cost Statement for 28th February 2017, using the FIFO method. Fresh Breath is a company that manufactures mouthwash and uses the process costing. The process involves mixing 3 ingredients. Ingredient 1 is added at the beginning of the period. Ingredient 2 is added at 50% of the process and ingredient 3 is added at the end of the process. Conversion costs take place evenly throughout the whole process. The following appeared in their records: 1. Opening work in process (65% completed) was 9000 units. 2. Units added during the process amounted to 150000 units. 3. Closing work in process ( 70% completed) was 6500 units. The total costs were as follows: Required: Using FIFO Method: Prepare the first four (4) steps of the Production and Cost Statement for 28th February 2017, using the FIFO method
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