PART $4$

Process Costing $-$ First$-$In First$-$Out

General Information

The I See The Light Company has a related company that produces the figurines. They use process costing in the molding department. The factory overnead is applied at a rate of $50\%$ of direct labor dollars. The material is added at the beginning of the process. The labor and ovemead costs are assumed to be added uniformly throughout.

Month of January

Selected information for January is presented below. Note that the applied overhead rate was $50\%$ of direct labor costs in the molding department.

Molding Department

Goods in$-$process as of January $1$ were $3,500$ figurines at a cost of $$57,050\mathrm{.}00.$ Of this amount, $$56,000\mathrm{.}00$ was from raw materials added, $$700\mathrm{.}00$ for labor and $$350\mathrm{.}00$ for overhead. These $3,500$ figurines were assumed to be $10\mathrm{.}00\%$ complete as to labor and ovemead.

During January, $22,000$ units were started, $$353,540\mathrm{.}00$ of materials and $$47,900\mathrm{.}00$ of labor costs were incurred.

The $6,000$ figurines that were in$-$process at the end of January were assumed to be $80\mathrm{.}00\%$ complete to labor and overhead.

All figurines in January passed inspection.