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Venus Brewery is a craft brewery that produces a special light beer for ladies. The beer are processed sequentially in two departments (Department X and
Venus Brewery is a craft brewery that produces a special light beer for ladies. The beer are processed sequentially in two departments (Department X and Department Y) before the final products are transferred to the finished goods store On 1 February 2016, the work in process in Department Y consisted of 12,000 litres which were 80% completed. During the month, a total of 160,500 litres were started and 148,500 litres were completed and transferred out. On 29 February 2016, 15,000 litres remained uncompleted. The ending work in process was 60% complete The cost information for Department Y for the month of February 80,000 642,000 Work in process, 1 February 2016 Cost transferred in from Department X during February Manufacturing costs added in Department Y during February Direct materials Conversion costs Total manufacturing costs, Department Y 321,000 541,275 862,275 1,584,275 In Department Y, direct material and transferred-in costs are added at the beginning of the manufacturing process. However, conversion costs are incurred evenly throughout the manufacturing process Inspection at Department Y takes place when the products are 75% complete Normal spoilage averages at 5% of the good units produced. The firm uses the FIFO method of process costing
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