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Please give the required cost of production report, thank you! 400 Problem 1. Sunflower Manufacturing Company sells a single model of fuel tank, which is
Please give the required cost of production report, thank you!
400 Problem 1. Sunflower Manufacturing Company sells a single model of fuel tank, which is manufactured in two producing departments, Fabricating and Finishing. Each fuel tank is cut from steel, shaped and welded to its basic form in the Fabricating Department. Then the tanks are transferred to Finishing Dept., where they are coated with a sealant and painted. The company uses the FIFO method of accumulating costs. Data related to October operations are: Fabricating Department Units in beginning inventory (100% complete as to materials and 40% converted) Units transferred to Finishing 1,100 Units in ending inventory 500 (100% complete as to materials and 80% converted) Costs in beginning inventory: Materials P29,280 Labor 1,900 Overhead 11,800 Costs added during the period: Materials 90,000 Labor 16,240 Overhead 46,740 Finishing Department: Units in beginning inventory 600 (40% complete as to materials and 20% converted) Units transferred to finished goods warehouse 1,300 Units in ending inventory 400 (50% complete as to materials and 60% converted) Costs in beginning inventory: Costs from preceding department P74,000 Materials 230 Labor 1,600 Overhead 2,520 Costs added during the period: Materials Labor Overhead 3,150 19,880 29,820 ? Costs from preceding department Required: Prepare a cost of production reportStep by Step Solution
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