Question 29

The Allbright BrickWorks, in Winnipeg, manufactures high-quality bricks used in residential and commercial construction. The firm is small but highly automated and typically produces about 300,000 bricks per month. A brick is created in a continuous production operation. In the initial step, the raw material, a mixture of soils and water, is forced into a brick mould moving along a conveyer belt. No other materials are required in the manufacture of a brick. Each brick takes about three days to complete. They spend the last 36 hours or so on the conveyor belt in an oven that removes moisture from the product. The conveyor belt speed is monitored and controlled by computer. The firm uses a process costing system based on actual costs in three cost poolsdirect materials, direct labour, and factory overheadto assign production costs to output. Cost and production data for October 2020 follow:

Production Data

Beginning work in process inventory (100% complete in terms of direct materials; 60% complete in terms of direct labour; 36% complete in terms of factory overhead)

36,000 bricks

Started this period 294,900 bricks

Ending work in process inventory (100% complete in terms of direct materials; 50% complete in terms of direct labour; 40% complete in terms of factory overhead)

34,000 bricks

Cost Data

Materials Direct Labour Overhead

Beginning inventory

$1,370 $430 $830

Cost in October 11,796 14,615 14,877

Determine the cost of bricks transferred to finished goods inventory and the cost of bricks in ending work in process inventory for October 2020. Assume the company uses the FIFO method.(Round answers to the nearest whole dollar, e.g. 5,275. Round per unit costs to the 4 decimal places, e.g. 15.2512.)

Cost of bricks transferred to finished goods inventory $ ___________________

Cost of bricks in ending work in process inventory $ ___________________