Question

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(Appendix 6A) FIFO; Production Report Aztec Inc. produces soft drinks. Mixing is the first department, and its output is measured in gallons. Aztec uses the FIFO method. All manufacturing costs are added uniformly. For July, the mixing department provided the following information: Production: Units in process, July 1, 40% complete 22,000 gallons Units completed and transferred out 142,000 gallons Units in process, July 31, 65% complete 20,000 gallons Costs: Work in process, July 1 $44,000 Costs added during July 365,500 Required: Prepare a production report. Aztec Inc. Mixing Department Production Report For the Month of July (FIFO Method) Unit Information Physical flow: Units to account for: Units in beginning WIP Units Units started

Answer 1

Solution:

Aztec Inc.
Production Report
For the month of July (FIFO Method)
Unit Information
Units to account for:	Units
Units in beginning WIP	22000
Units started	140000
Total units to account for:	162000
Units to account for:	Units
Units started and completed	120000
From beginning WIP	22000
Units in ending WIP	20000
Total units to account for	162000
Equivalent units	Units
Started and completed	120000
To complete beginning WIP	13200
Units in ending WIP	13000
Total Equivalent units	146200
Cost information:	Dollars
Cost of beginning WIP	$44,000.00
Costs added by department	$365,500.00
Total costs to account for	$409,500.00
Cost per equivalent unit	$2.50
Costs accounted for:	Total
Transferred out:
Units started and completed	$300,000.00
Units in beginning WIP:
From prior period	$44,000.00
From current period	$33,000.00
Total costs transferred out	$377,000.00
Goods in Ending WIP	$32,500.00
Total costs accounted for	$409,500.00