sting FIFO (12 marks) Harbour Company has two departments, a machining department and a finishing department. The machining department had 300 units of unfinished product each 40% completed on September 30. During October of the same year, this department put another 900 units into production and completed 1,000 units and transferred them to the finishing department. At the end of October, the units of unfinished product in ending Work-in-process inventory is 70% completed. Harbour Company introduces all direct materials when the production process is 50% complete. Conversion costs are added uniformly throughout the process. Following is a summary of production costs incurred during October: Direct Materials Conversion Costs Beginning Work-in-process Costs added in October Total costs $ 738 $9,600 6,120 $9,600 $6,858 Required: a. Prepare a production report for the October activity in the machining department using the first-in-first-out method. (Use the format on the last page) (10 marks) b. How does the cost per equivalent unit of conversion cost in beginning Work-in- process inventory compare to the cost per equivalent unit of conversion cost added for the month of October? (2 marks) ACCT 3420 - Assignment - Week 10/11 Quantity Production report STEP 1: Schedule Units to be accounted for: Work in process, beginning Started into production Total units Units accounted for: Equivalent units Materials Conversion STEP 2: Total Prod. Total costs Cost to be accounted for: Costs Materials Conversion Total cost (a) Equivalent units of production (b) (Step 1 above) Cost per equivalent unit (a/b) STEP 3: Cost Reconciliation Total cost of goods completed Total ending work in process Total cost 8 | Page Equivalent units Materials Conversion