Question 4 (14 Marks)

Johnstone Brewers Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department for a recent month:

Work in process, beginning: Units in process Stage of completion with respect to materials Stage of completion with respect to conversion Costs in the beginning inventory: Materials cost Conversion cost Units started into production during the month Units completed and transerred out 300 60% 80% $594 $8,256 26,000 25,500 Costs added to production during the month: Materials cost Conversion cost Work in process, ending: Units in process Stage of completion with respect to materials Stage of completion with respect to conversion $79,732 $887,626 80C 50% 40%