question 56 FIFO method

8-55. Eire Products is a specialty lubricants company. The Lake Plant produces a single product in three departments: Filtering, Blending, and Packaging. Additional materials are added in the Blending process when units are 50 to 55 percent complete with respect to conversion. Information for Work in process on June 1 consisted of 9,000 barrels with the following costs. operations in June in the Blending process appear as follows. Degree of Completion Amount $10,540 100% Filtering costs transferred in. Costs added in Blending Direct materials Conversion costs 0% 30% $ O 18,335 $18,335 $28,875 Work in process June 1 During June, 116,000 barrels were transferred in from Filtering at a cost of $151,960. The following costs were added in Blending in June. Direct materials Conversion costs $387,500 538,265 $925,765 Total costs added Blending finished 115,000 barrels in June and transferred them to Packaging. At the end of June, there were 10,000 barrels in work-in-process inventory. The units were 60 percent complete with respect to conversion costs. The Blending Department uses the weighted-average method of process costing. The Filtering Department at Eire uses the FIFO method of process costing. The cost analyst in Blending has learned that if the Filtering Department at Eire had used the weighted-average method, the amount of costs transferred in from Filtering would have been $10,340 in the beginning work in process and $149,660 for the amount transferred in this month. Required Prepare a production cost report for June for the Blending Department. 8-56. Prepare a Production Cost Report: FIFO Method Refer to the data in Problem 8-55. The Blending Department uses the FIFO method of process costing. The Filtering Department at Eire uses the weighted average method of process costing. The cost analyst in Blending has learned that if the Filtering Department at Eire had used the FIFO method, the amount of costs transferred in from Filtering would have been $11,700 in the begin- ning work in process and $150,800 for the amount transferred in this month