Question
The company uses the FIFO method in its process costing system. Production data for the Mashing Department (first stage) for the month of January appears
The company uses the FIFO method in its process costing system. Production data for the Mashing Department (first stage) for the month of January appears below:
Production data:
Units (gallons) in process, January 1 (materials 100% complete;
conversion 90% complete). . . . . . . . . . . . . . . . . . . . . . 20,000
Units started into production. . . . . . . . . . . . . . . . . . . . . . . . . . 390,000
Units in process, January 31 (materials 75% complete;
conversion 25% complete) . . . . . . . . . . . . . . . . . . . . . . 40,000
Cost data:
Work in process inventory, January 1:
Materials cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,000
Conversion cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $13,000
Cost added during the month:
Materials cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $495,000
Conversion cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $253,000
REQUIRED:
Prepare a FIFO production report for the Mashing Department for Windy City Brewing Co. for the month ended January 31, 2018.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started