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Problem 2 (25 points). The Organ Brewing Company employs a process costing system, using the FIFO method, in its beer production plants. In the company's

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Problem 2 (25 points). The Organ Brewing Company employs a process costing system, using the FIFO method, in its beer production plants. In the company's small Milwaukee plant, beer is packaged in 16 gallon kegs. Direct materials are added at the beginning of the process, and conversion costs are incurred evenly throughout the manufacturing process. Unit information for a recent period follows. ORGAN BREWING COMPANY MILWAUKEE PLANT INFORMATION FOR UNITS RELATING TO PRODUCTION FOR RECENT PERIOD Beginning work in process inventory (40% complete) Units started Ending work in process inventory (80% complete) 900 kegs 4,000 kegs 1,000 kegs The follow ing costs were incurred for this production. ORGAN BREWING COMPANY MILWAUKEE PLANT COSTS INCURRED RELATING TO PRODUCTION FOR RECENT PERIOD Direct Materials Conversion Costs 1,900 S Beginning work in process inventory 1,000 Current period costs 7,200 11,718 REQUIRED: Using the attached forms, prepare a cost of production report for Organ Brewing Company for the recent period. Round your costs per equivalent unit to two decimal places and all other dollar amounts to the nearest whole dollar. Schedule of Physical and Equivalent Units (1) (2) Unit Cost Analysis Schedule. Cost Summary Schedule. (1) ORGAN BREWING COMPANY SCHEDULE OF PHYSICAL AND EQUIVALENT UNITS--FIFO FOR RECENT PERIOD Equivalent Units Physical Units Direct Conversion Costs Materials Units To Account For: Beginning WIP Inventory Units Started During Period Total Units To Account For Units Accounted For: Units Completed During Period: From Beginning WIP Inventory Units Started and Completed During Period Total Units Completed During Period Units in Ending WIP Inventory Total Units Accounted For (2) ORGAN BREWING COMPANY UNIT COST ANALYSIS SCHEDULE--FIFO FOR RECENT PERIOD Conversion Total Direct Materials Costs Costs Costs To Account For: Costs From Beginning WIP Inventory Current Period Costs Total Costs To Account For Divided By Equivalent Units | Cost Per Equivalent Unit ORGAN BREWING COMPANY (3) COST SUMMARY SCHEDULE-FIFO FOR RECENT PERIOD Direct Conversion Total Materials Costs Costs Costs Accounted For: Costs From Beginning WIP Inventory To Complete Beginning WIP Inventory: Direct Materials Conversion Costs Units Started and Completed During Period: Direct Materials Conversion Costs Total Cost of Units Completed and Transferred to Finished Goods Ending Work in Process Inventory Direct Materials Conversion Costs Total Cost of Ending Work in Process Total Costs Accounted For 1

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