Question
XYZ Yogurt Company produces yogurt in two departments-Mixing and Finishing. In Mixing, all ingredients except fruit are added at the start of production. In Finishing,
XYZ Yogurt Company produces yogurt in two departments-Mixing and Finishing. In Mixing, all ingredients except fruit are added at the start of production. In Finishing, fruit is added and then the mixture is placed into containers. Adding the fruit to the basic yogurt mixture increases the volume transferred in by the number of gallons of fruit added. Any spoilage that occurs is in the Finishing department. Spoilage is detected just before the yogurt is placed into containers or at the 98 percent completion point. All spoilage is normal. The following is information pertains to the Finishing department.
Finishing Department, March 2021
Beginning WIP 5,000 gallons (100% fruit, 0% container, 30% Conversion Cost)
Gallons transferred in 5,500
Gallons of fruit added 1,200
Ending WIP 1,700 gallons (100% fruit, 0% container, 60% Conversion Cost)
Gallons transferred out 9,000
Spoilage 1,000 gallons
Beginning WIP Costs:
Transferred In 9,700
Fruit 10,500
Conversion Cost 15,000
Current Costs:
Transferred In 12,400
Fruit 54,000
Containers 11,000
Conversion Cost 98,000
Make a cost of production report of the Finishing Department for March 2021. The company uses the first-in-first-out method of cost flows. Include a step-by-step solution and explanation with their correct account title. Create the cost of production report in a table format.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
XYZ Yogurt Company Finishing Department Cost of Production Report March 2021 FIFO Method Step1 Equivalent Units Calculation We need to determine the equivalent units for transferredin costsfruitcontai...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