Schrader Cellars uses the FIFO method in its two department process costing system: Fermenting (grape sorting is part of the fermentation process) and Packaging. Direct materials (grapes) are added at the beginning of the fermenting process and at the end of the packaging process (bottles). Conversion costs are added evenly throughout each process. Data from the month of december for the Fermenting Department are below:

Beginning work in process inventory:

Units in beginning work in process inventory 3,000 gallons

Materials costs $122,000

Conversion costs $7,000

Percentage complete with respect to materials 100%

Percentage complete with respect to conversion 50%

Units started into production during the month 5,000 gallons

Materials costs added during the month $250,000

Conversion costs added during the month $30,000

Ending work in process inventory:

Units in ending work in process 2,000 gallons

Percentage complete with respect to materials 100%

Percentage complete with respect to conversion 75%

REQUIRED:

1. Prepare a FIFO production report for the Fermentation Department for Schrader Cellars for the month ended December 31, 2018.

Schrader Cellars uses the FIFO method in its two department process costing system: Fermenting (grape sorting is part of the fermentation process) and Packaging. Direct materials (grapes) are added at the beginning of the fermenting process and at the end of the packaging process (bottles). Conversion costs are added evenly throughout each process. Data from the month of december for the Fermenting Department are below:

Beginning work in process inventory:

Units in beginning work in process inventory 3,000 gallons

Materials costs $122,000

Conversion costs $7,000

Percentage complete with respect to materials 100%

Percentage complete with respect to conversion 50%

Units started into production during the month 5,000 gallons

Materials costs added during the month $250,000

Conversion costs added during the month $30,000

Ending work in process inventory:

Units in ending work in process 2,000 gallons

Percentage complete with respect to materials 100%

Percentage complete with respect to conversion 75%

REQUIRED:

1. Prepare a FIFO production report for the Fermentation Department for Schrader Cellars for the month ended December 31, 2018.