Question
Spolasky Industries manufactures a product that passes through three processes: Mixing, Baking, and Packaging. Direct materials are added in the Mixing Department at the beginning
Spolasky Industries manufactures a product that passes through three processes: Mixing, Baking, and Packaging. Direct materials are added in the Mixing Department at the beginning of the process. Information for the Mixing Department for December 2021 follows:
Work in process, December 1: |
|
Units (20% complete to conversion costs) | 7,500 |
Direct materials | $2,000 |
Direct labor | $1,500 |
Applied Overhead | $1,188 |
During December, 150,000 units were completed and transferred to Packaging. The following costs were incurred by the Mixing Department during December:
Direct materials | $25,000 |
Direct labor | $15,000 |
Applied overhead | $6,000 |
Work in process, December 31: |
|
Units (60% complete to conversion costs) | 12,000 |
1. Prepare a Cost of Production Report using the Weighted Average Method.
2. Prepare a Cost of Production Report using the FIFO Method.
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