Management Accounting

Malino Corporation manufactures fruity drinks through two process: blending and packaging. Malino uses FIFO method in its production cost reporting. Production data for blending department are as follows:

WIP. June 1: materials

29,000

WIP. June 1: conversion costs

16.500

Materials added

$ 1.275.000

Labor

99.000

Overhead

110.500

Production records show that:

1. 25.000 unit were in beginning work in process, 40% complete as to conversion cost.

2. 425,000 units were started into production

3. 35,000 units were in ending work in press, 40% complete as to conversion cost

Materials are fully included/given at the beginning of each process

Instructions:

a) Compute the physical units of production.

b) Determine the equivalent units of production for materials and conversion costs.

c) Compute the unit costs of production (rounded to three decimals).

d) Determine the costs to be assigned to the units transferred out and in process.

Show your computation Malino Corporation manufactures fruity drinks through two process: blending and packaging. Malino uses FIFO method in its production cost reporting. Production data for blending department are as follows: WIP, June 1: materials WIP, June 1: conversion costs $ 29,000 $16.500 $ 1.275,000 Materials added Labor $ 99,000 Overhead $ 110,500 Production records show that: 1. 25,000 unit were in beginning work in process, 40% complete as to conversion cost. 2.425,000 units were started into production 3. 35.000 units were in ending work in prcess, 40% complete as to conversion cost Materials are fully included/given at the beginning of each process Instructions: a) Compute the physical units of production b) Determine the equivalent units of production for materials and conversion costs. c) Compute the unit costs of production (rounded to three decimals) d) Determine the costs to be assigned to the units transferred out and in process