Question

77. Surf Products Company uses an automated process to clean and polish its souvenir items. For March, the company had the following activities: Beginning work in process inventory 3,000 items, 1/3 complete Units placed in production 12,000 units Units completed 9,000 units Ending work in process inventory 6,000 items, 1/2 complete Cost of beginning work in process Direct material costs, current Conversion costs, current $2,500 $9,000 $7,700 Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process. Required: Prepare a production cost worksheet using the FIFO method.

cost accounting problem. please show work

Answer 1

Answer PRODUCTION COST WORKSHEET Flow of production Direct Materials Conversion | Work in process, beginning Started during period Physical Units 3,000 12,000 15,000 Units Completed: Work in process, beginning Started and completed Work in process, ending 3,000 6,000 6,000 15,000 6,000 6.000 12,000 2,000 6,000 3,000 11,000 Costs Direct Materials Conversion Total Work in process, beginning Costs added during period Total costs to account for Divided by equivalent units Equivalent-unit costs $2,500 $16,700 $19,200 $9,000 $9,000 12,000 $0.75 $7,700 $7,700 11,000 $0.70 $1.45

Assignment of Costs Work in process, beginning Completion of beginning (2,000 x $0.70) Total beginning inventory Started and Completed (6,000 x $1.45) Total costs transferred out Work in process, ending Direct materials (6,000 x $0.75) Conversion (6,000 x $0.70 x 0.50) $2,500 $1,400 $3,900 $8,700 $12,600 $4,500 $2,100 $6,600 Costs accounted for $19,200

Answer 2

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