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 overhead is applied at a rate of 50% of direct labor dollars. The material is added at the beginning of the process. The labor and overhead 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 3,300 figurines at a cost of $58,740.00. Of this amount, $52,800.00 was from raw materials added, $3,960.00 for labor and $1,980.00 for overhead. These 3,300 figurines were assumed to be 60.00% complete as to labor and overhead. During January 24,000 units were started, $388,560.00 of materials and $45,440.00 of labor costs were incurred. The 6,500 figurines that were in process at the end of January were assumed to be 60.00% complete to labor and overhead. All figurines in January passed inspection. I See The Light Projected Balance Sheet As of December 31, 20x1 $ 34,710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets 8,000.00 500 $16.00 0 3000 @ $30.00 90,000.00 $ 200,210.00 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 20,000.00 6,800.00 13,200.00 $ 213,410.00 $ $ 54,000.00 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Eamings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 147,410.00 159,410.00 $ 213,410.00 MOLDING Physical Flow of Units Work Process - Beginning 13 Us Started this period Units to Account for (1201) (12.00 Total transferred Work Process - Ending Total Accounted for (12.00 (12.04 (12.00 53 54 55 Equilt Units Conversion Round to the places, (12.09 60 81 80 Tot.com in the Beginning Inventory Round to two ples, .. 12.00 100 Total cost of Material this period Round to face places, N. 110 111 121 123 Total cost of Conversion this period found to two places, 124 125 130 187 Total cost to counter Hundt op 130 140 541 Couple Morthis period Round to see 14 144 145 146 Cost percent of conversion this period Round to see pics 14 14 150 951 150 Cent of the unite transferred and cons on Hound to fuo places, 154 157 158 (12.15 160 161 COME ending interyed convenion Red Tote places 10 (12.16 16 Tot ce counted for Round places 966 106 A 11 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 overhead is applied at a rate of 50% of direct labor dollars. The material is added at the beginning of the process. The labor and overhead 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 3,300 figurines at a cost of $58,740.00. Of this amount, $52,800.00 was from raw materials added, $3,960.00 for labor and $1,980.00 for overhead. These 3,300 figurines were assumed to be 60.00% complete as to labor and overhead. During January 24,000 units were started, $388,560.00 of materials and $45,440.00 of labor costs were incurred. The 6,500 figurines that were in process at the end of January were assumed to be 60.00% complete to labor and overhead. All figurines in January passed inspection. I See The Light Projected Balance Sheet As of December 31, 20x1 $ 34,710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets 8,000.00 500 $16.00 0 3000 @ $30.00 90,000.00 $ 200,210.00 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 20,000.00 6,800.00 13,200.00 $ 213,410.00 $ $ 54,000.00 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Eamings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 147,410.00 159,410.00 $ 213,410.00 MOLDING Physical Flow of Units Work Process - Beginning 13 Us Started this period Units to Account for (1201) (12.00 Total transferred Work Process - Ending Total Accounted for (12.00 (12.04 (12.00 53 54 55 Equilt Units Conversion Round to the places, (12.09 60 81 80 Tot.com in the Beginning Inventory Round to two ples, .. 12.00 100 Total cost of Material this period Round to face places, N. 110 111 121 123 Total cost of Conversion this period found to two places, 124 125 130 187 Total cost to counter Hundt op 130 140 541 Couple Morthis period Round to see 14 144 145 146 Cost percent of conversion this period Round to see pics 14 14 150 951 150 Cent of the unite transferred and cons on Hound to fuo places, 154 157 158 (12.15 160 161 COME ending interyed convenion Red Tote places 10 (12.16 16 Tot ce counted for Round places 966 106 A 11