Question

Product Cost Report-FIFO Method Reston Manufacturing Corporation produces a cosmetic product in three consecutive processes. The costs of Department 1 for May 2016 were as follows: Cost of beginning inventory Costs added in Department 1 Direct material 482,400 Direct labor 489,300 Manufacturing overhead 390780 130240 Department 1 handled the following units during May 2.000 Units in process, May 1 Units started in Department 40.000 Units transferred to Department 2 39.000 Units in process. May 31 2.000 On average, the May 1 units were 30 complete the May 31 units were 60% complete. Materials are added at the beginning of the process and conversion costs occur evenly throughout the process in Department 1. Reston uses the FIFO method for process costing. Prepare the product cost report for Department for May Round average cost per equivalent unit to two decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number Resten Manufacturing Corporation Department 1 Flow of Units and Equivalent Units Calculation, May 2016 Equivalent Units Win Direct in Conversion May

Answer 1

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Reston Manufacturing					Started and completed in May
Cost of Production Report- Department 1					Goods finished in May-	39,000.00
For the Month Ended May 31		Equivalent Units			Less: Opening work in process	2,000.00
Unit information	Physical Units	Materials			Started and completed in May	37,000.00	B
Units charged to production:
Inventory in process May 1	2,000.00
Units started	40,000.00
Total units accounted for by the Department	42,000.00
Units to be assigned costs:	Physical Units	% in May	Materials	% in May	Conversion
Inventory in process May 1	2,000.00	0%	-	70%	1,400.00
Started and completed in May	37,000.00	100%	37,000.00	100%	37,000.00
Inventory in process, May 31	3,000.00	100%	3,000.00	60%	1,800.00
Total units to be assigned costs:	42,000.00		40,000.00		40,200.00
Cost Information				Total
Costs per equivalent unit
Total costs for May in Department 1		482,400.00	820,080.00
Total equivalent units		40,000.00	40,200.00
Cost per equivalent unit		12.06	20.40
Costs assigned to production:
Inventory in process, May 1				3,638,340.00
Costs incurred in May		482,400.00	820,080.00	1,302,480.00
Total costs accounted for by the Department				4,940,820.00
Costs allocated to completed and partially completed units
Inventory in process, May 1 balance				3,638,340.00
To complete inventory in process, May 1		-	28,560.00	28,560.00
Cost of completed May 1 work in process				3,666,900.00
Started and completed in May		446,220.00	754,800.00	1,201,020.00
Transferred to Bottling Department in May				4,867,920.00
Inventory in process, May 31		36,180.00	36,720.00	72,900.00
Total costs assigned by the Department				4,940,820.00