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Prepare a production cost report using FIFO method from the following information and journalize the transfer...

Prepare a production cost report using FIFO method from the following information and journalize the transfer of cost of goods manufactured to the warehouse. Material is added to the product at the beginning of the process and conversion costs are added when process is half completed. Normal spoilage occurred during the period and consisted of 200 units (material, labor, and overhead) and 300 units were considered abnormal spoilage. In

Units: WIP beginning 2,000                          Units Stated 7,000

Material

Labor

Overhead

Units Finished

WIP Beginning 2,000

1/3 completed

5/8 completed

4/5 completed

Normal Spoilage 200

Abnormal Spoilage 300

2/3

2/3

2/3

Started & Finish

?

?

?

WIP Ending 3,000

¾ Completed

4/5 Completed

100% completed

Transferred in

Material

Labor

Overhead

Costs

1,000

8,000

17,000

25,000
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Answer #1

Answer:-

rundown of physical and equal units-

The physical units The material The conversion cost
units to be completed for-
units in the beginning WIP stock 2000
units started during the period 7000
The total 9000
units accounted for-
units from begining 2000 1333 750
units began and finished 4000 4000 4000
units in the ending inventory 3000 2250 2400
so that the total 9000 7583 7150

cost s to be accounted fo-

The material The conversion cost
cost incurred 8000 17000
units produced 7583 7150
So that the cost per unit 1.05

2.38
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