God QUESTION III 20 POINTS The Allbright BrickWorks, in Winnipeg, Manitoba, manufactures high-quality bricks used in residential and commercial construction. The firm is small but highly automated and typically produces about 300,000 bricks per month. A brick is created in a continuous production operation. In the initial step, the raw material, a mixture of soils and water, is forced into a brick mould moving along a conveyer belt. No other materials are actually required in the manufacture of a brick. Each brick takes about three days to complete. Approximately the last 36 hours on the conveyer belt are spent in an oven that removes moisture from the product. The conveyer belt speed is monitored and controlled by computer. The firm uses a process costing system based on actual costs in three cost pools-direct materials, direct labour, and factory overhead-to assign production costs to output. Cost and production data for October 2005 follow: 2,500 bricks Production Data Beginning work in process inventory (100% complete as to direct materials; 60% complete as to direct labour, 36% complete as to factory overhead) Started this period Ending work in process inventory (100% complete as to direct materials: 50% complete as to direct labour, 40% complete as to factory overhead) Cost Data Materials Direct Labour Overhead Beginning inventory $ 13,300 $ 4,350 $ 8,520 Cost in October 122,000 150,000 181,800 30,500 bricks 3,000 bricks Instructions Prepare a production cost report to determine the cost of bricks transferred to finished goods inventory and the cost of bricks in ending work in process inventory for October 2005. Assume the company uses the FIFO method. 6