Problem 6-46 FIFO Method; Two Departments [LO 6-2, 6-5, 6-6] Bhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in the manufacturing. The E molding department fills the molds with hot liquid plastic that is left to cool and then opens them. The finishing department removes the plastic frame from the mold and strips the edges of the frames of extra plastic. The following information is available for the month of January: Work-in-Process Inventory Molding department Finishing department January 1 Quantity (pounds) Cost None 5,000 $21,000 January 31 Quantity (pounds) Cost None 2,000 The WIP Inventory in the finishing department is estimated to be 40% complete for conversion both at the beginning and end of January. Costs of production for January follow: Costs of Production Molding department Finishing department Direct Materials $570,000 Conversion $150,000 173,530 The molding department started 50,000 pounds of product in January. The firm uses the FIFO method of process costing. Required 1. Prepare a production cost report for the molding department. 2. Prepare a production cost report for the finishing department. Production Information Molding Department Physical Units FIFO Equivalent Units Direct Conversion Materials Completion Percentage Input: Beginning WIP Direct materials Conversion Units started (lbs) Total to account for Output: Units finished or trans-out (lbs) Ending WIP Direct materials Conversion Total accounted for (lbs) Total equivalent units Units Cost Determination Direct Total Material Conversion Beginning WIP Current costs Total Divide by equivalent units FIFO Cost per EU Cost Assignment Units Units in Completed and Ending WIP Transferred Out Inventory Total Finished goods lbs lbs Ibs Prior period costs in Beginning WIP Current period cost to complete Beg WIP Cost of units started and finished Total Ending WIP lbs lbs Direct materials lbs Conversion Ibs Total manufacturing costs accounted for Production Information Finishing Department Physical Units FIFO Equivalent Units Direct Conversion Materials Completion Percentage Transferred-in Costs Input: Beginning WIP Direct materials Conversion Units started or trans-in Total to account for Output: Units finished or trans-out Ending WIP Direct materials Conversion Total accounted for Total equivalent units Unit Cost Determination Materials Conversion Trans-in Total Beginning WIP Current costs Total Divide by equivalent units FIFO Cost per EU Cost Assignment Completed and Ending Work Trans-Out in Process Total Finished goods units Prior period costs in Beginning WIP Current period cost to complete Beg WIP Direct Materials Conversion Equiv units Equiv units Units started and finished Total Ending WIP units Trans-in Direct materials Conversion Total manufacturing costs accounted for Problem 6-46 FIFO Method; Two Departments [LO 6-2, 6-5, 6-6] Bhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in the manufacturing. The E molding department fills the molds with hot liquid plastic that is left to cool and then opens them. The finishing department removes the plastic frame from the mold and strips the edges of the frames of extra plastic. The following information is available for the month of January: Work-in-Process Inventory Molding department Finishing department January 1 Quantity (pounds) Cost None 5,000 $21,000 January 31 Quantity (pounds) Cost None 2,000 The WIP Inventory in the finishing department is estimated to be 40% complete for conversion both at the beginning and end of January. Costs of production for January follow: Costs of Production Molding department Finishing department Direct Materials $570,000 Conversion $150,000 173,530 The molding department started 50,000 pounds of product in January. The firm uses the FIFO method of process costing. Required 1. Prepare a production cost report for the molding department. 2. Prepare a production cost report for the finishing department. Production Information Molding Department Physical Units FIFO Equivalent Units Direct Conversion Materials Completion Percentage Input: Beginning WIP Direct materials Conversion Units started (lbs) Total to account for Output: Units finished or trans-out (lbs) Ending WIP Direct materials Conversion Total accounted for (lbs) Total equivalent units Units Cost Determination Direct Total Material Conversion Beginning WIP Current costs Total Divide by equivalent units FIFO Cost per EU Cost Assignment Units Units in Completed and Ending WIP Transferred Out Inventory Total Finished goods lbs lbs Ibs Prior period costs in Beginning WIP Current period cost to complete Beg WIP Cost of units started and finished Total Ending WIP lbs lbs Direct materials lbs Conversion Ibs Total manufacturing costs accounted for Production Information Finishing Department Physical Units FIFO Equivalent Units Direct Conversion Materials Completion Percentage Transferred-in Costs Input: Beginning WIP Direct materials Conversion Units started or trans-in Total to account for Output: Units finished or trans-out Ending WIP Direct materials Conversion Total accounted for Total equivalent units Unit Cost Determination Materials Conversion Trans-in Total Beginning WIP Current costs Total Divide by equivalent units FIFO Cost per EU Cost Assignment Completed and Ending Work Trans-Out in Process Total Finished goods units Prior period costs in Beginning WIP Current period cost to complete Beg WIP Direct Materials Conversion Equiv units Equiv units Units started and finished Total Ending WIP units Trans-in Direct materials Conversion Total manufacturing costs accounted for