Question
Remington Manufacturing Company uses process costing for their production departments. In the Molding Department, direct materials are added at the beginning of the process. Direct
Remington Manufacturing Company uses process costing for their production departments. In the Molding Department, direct materials are added at the beginning of the process. Direct labor and factory overhead are added evenly throughout the process. The company uses monthly reporting periods for its FIFO process cost accounting. The following is the Molding Department cost data for June: The June 1 beginning work in process inventory consists of 20,000 units. Costs for this inventory are: $82,500 of direct materials, $24,400 of direct labor, and $48,800 of factory overhead. Beginning work in process inventory is 100% complete with respect to direct materials and 75% complete with respect to direct labor and factory overhead. In addition to the beginning inventory costs, the company issued the following costs into work in process inventory: direct materials, $240,000; direct labor, $68,000; factory overhead, $136,000. During June, the company completed and transferred 60,000 units of its products to finished goods. At the end of the month, the work in process inventory consists of 15,000 units were 40% complete with respect to direct labor and factory overhead and 100% complete with respect to direct materials. Required: Prepare the companys cost production report using the FIFO method for the month of June. Float decimals when calculating costs per equivalent units of production for the FIFO method.
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