Question

Okay, so I did quite a bit of this, but I got stuck on like the last quarter.

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 Finis $606,390 Direct material $80,400 Direct labor 81,550 Manufacturing overhead__ overhead 55,130 Department 1 handled the following units during May: Units in process, May Units started in Department 1 40,000 Units transferred to Department 2 39,000 Units in process, May 31 2,000 3,000 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 1 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.

Answer 1

• Incomplete portion of Production Report is completed below:

		Direct Materials	Conversion Costs
Beginning Inventory	$606,390	$0	$0
Current	$217,080	$80,400	$136,680
Total Cost to account for	$823,470	$80,400	$136,680
Total Equivalent units		40,000	40,200
Equivalent unit cost		$                    2.01	$                   3.40

Beginning Inventory:
Cost incurred in Dec	$606,390
Cost incurred in Jan	$4,760	[1400 units x $ 3.4]
Started and Finished	$200,170	[37000 units x (2.01+3.4)]
Cost of Goods manufactured	$811,320	[606390+4760+200170]
Ending Inventory:
Direct material	$6,030	[3000 units x $2.01]
Conversion costs	$6,120	[1800 units x $3.4]
Cost of ending Inventory	$12,150	[6030+6120]
Total Cost allocated	$823,470	[811320 + 12150]