Question
Sunny Company manufactures and sells several different kinds of soft drinks. Direct materials (sugar syrup and artificial flavor) are added at the beginning of production
Sunny Company manufactures and sells several different kinds of soft drinks. Direct materials (sugar syrup and artificial flavor) are added at the beginning of production in the Mixing Department. Direct labor and overhead costs are applied to products throughout the process. For August, beginning inventory for the citrus flavor was 2,400 gallons, 80 percent complete. Ending inventory was 3,600 gallons, 50 percent complete. Production data show 240,000 gallons started during August. Of the 240,000 gallons started during the period, 236,400 gallons were completed. Beginning inventory costs were $576 for direct materials and $672 for conversion costs. Current period costs were $57,600 for direct materials and $83,538 for conversion costs. Required (50 points): Using the FIFO costing method, prepare a process cost report and show the ledger of the Work in Process Inventory account for the Mixing Department for August.
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