Question

Production Report, No Beginning Inventory Softkin Company manufactures sun protection lotion. The Mixing Department, the first process department, mixes the chemicals required for the repellant. The following data are for the current year: Work in process, January 1 Gallons started Gallons transferred out Direct materials cost Direct labor cost Overhead applied Direct materials are added at the beginning the process. Ending inventory is 95 percent complete with respect to direct labor and overhead. Required: Prepare a production report for the Mixing Department for the current year. If an amount is zero, enter-0. 50,000 378,000 $900,000 $1,785,600 $2,678,400 Softkin Company Mixing Department Production Report for Current Year Units to account for: Units in beginning WIP Next Check My Work

Answer 1

	Production Report for Current Year
Units to account for:
Units in beginning WIP	0
Units started	450000
Total Units to account for	450000
Units accounted for:
	Physical flow	Direct materials	Conversion costs
Units completed	378000	378000	378000
Units in Ending WIP	72000	72000	68400
Total Units accounted for	450000	450000	446400
	Cost information
Costs to account for:
	Direct materials	Conversion costs	Total
Costs in Beginning WIP	0	0	0
Costs added by department	900000	4464000	5364000
Total costs to account for	900000	4464000	5364000
Cost per equivalent unit	2	10	12
Costs accounted for:
Units completed			4536000	=378000*12
Ending work in process			828000	=(72000*2)+(68400*10)
Total Costs accounted for			5364000