ZuoTi.Pro
Question

FIFO Method, Two-Department Analysis

Healthway uses a process-costing system to compute the unit costs of the minerals that it produces. It has three departments: Mixing, Tableting, and Bottling. In Mixing, at the beginning of the process all materials are added and the ingredients for the minerals are measured, sifted, and blended together. The mix is transferred out in gallon containers. The Tableting Department takes the powdered mix and places it in capsules. One gallon of powdered mix converts to 1,600 capsules. After the capsules are filled and polished, they are transferred to Bottling where they are placed in bottles, which are then affixed with a safety seal and a lid and labeled. Each bottle receives 50 capsules.

During July, the following results are available for the first two departments (direct materials are added at the beginning in both departments):



Mixing
Tableting
Beginning inventories:





  Physical units
5gallons
4,000capsules
  Costs:





    Direct materials
$120

$32
    Direct labor
128

20
    Overhead
?

?
    Transferred in
—

140
Current production:





  Transferred out
125gallons
198,000capsules
  Ending inventory
6

6000
  Costs:





    Direct materials
$3,144

$1,584
    Transferred in
—

?
    Direct labor
4,096

1,944
    Overhead
?

?
Percentage of completion:





  Beginning inventory
40%
50%
  Ending inventory
50

40

Overhead in both departments is applied as a percentage of direct labor costs. In the Mixing Department, overhead is 200 percent of direct labor. In the Tableting Department, the overhead rate is 150 percent of direct labor.

Required:

1. Prepare a production report for the Mixing Department using the FIFO method. Follow the five steps outlined in the chapter. If required, round your cost per equivalent unit answers to three decimal places and use them in subsequent computations. Round all other calculations and final answers to the nearest dollar.

Healthway
Mixing Department
Production Report for July 20XX
Unit Information
Units to account for:
Units, beginning work in process
Units started
Total units to account for
Units accounted for:


Equivalent Units

Physical FlowDirect MaterialsConversion Costs
Units started and completed
Units, beginning work in process
Units, ending work in process
Total units accounted for
Cost Information
Costs to account for:

Direct MaterialsConversion CostsTotal
Costs in beginning work in process$$$
Costs added by department
Total costs to account for$$$
Cost per equivalent unit$$$
Costs accounted for:

Transferred OutEnding Work in ProcessTotal
Goods started and completed$
$
Units, beginning work in process


Prior period
Current period
Ending work in process:


Direct materials
$
Conversion costs
Total costs accounted for$$$

2. Prepare a production report for the Tableting Department using the FIFO method. Follow the five steps outlined in the chapter. If required, round your cost per equivalent unit answers to four decimal places and use them in subsequent computations. Round all other calculations and final answers to the nearest dollar. If an amount is zero, enter "0".

Healthway
Tableting Department
Production Report for July 20XX
Unit Information
Units to account for:
Units, beginning work in process
Units started
Total units to account for
Units accounted for:


Equivalent Units

Physical FlowTransferred InDirect MaterialsConversion Costs
Units started and completed
Units, beginning work in process
Units, ending work in process
Total units accounted for
Cost Information
Costs to account for:

Transferred InDirect MaterialsConversion CostsTotal
Costs in beginning work in process$$$$
Costs added by department
Total costs to account for$$$$
Cost per equivalent unit$$$$
Costs accounted for:

Transferred OutEnding Work in ProcessTotal
Goods transferred out$
$
Units, beginning work in process:


Prior period
Current period
Ending work in process:


Transferred in
Direct materials
Conversion costs
Total costs accounted for$$


accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)

All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
FIFO TWO DEPARTMENTS
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • Production Report, No Beginning Inventory Softkin Company manufactures sun protection lotion. The Mixing Department, the first...

    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 450,000 Gallons transferred out 378,000 Direct materials cost $900,000 Direct labor cost $1,785,600 Overhead applied $2,678,400 Direct materials are added at the beginning of the process. Ending inventory is 95 percent complete with respect to direct labor and overhead....

  • FIFO Method, Equivalent Units, Unit Cost, Multiple Departments Fordman Company has a product that passes through...

    FIFO Method, Equivalent Units, Unit Cost, Multiple Departments Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December: Units to account for:   Units,...

  • Weighted Average

    Weighted Average Method, Equivalent Units, Unit Cost, Multiple DepartmentsFordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments.The second department (Polishing) had the following physical flow schedule for December:Units to account for:  Units, beginning work in...

  • FIFO Muskoge Company FIFO Method, Two-Department Analysis Muskoge Company uses a process-costing system. The company manufactures...

    FIFO Muskoge Company FIFO Method, Two-Department Analysis Muskoge Company uses a process-costing system. The company manufactures a product that is processed in two departments: Molding and Assembly. In the Molding Department, direct materials are added at the beginning of the process; in the Assembly Department, additional direct materials are added at the end of the process. In both departments, conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the...

  • LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments—Mixing, Refining,...

    LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments—Mixing, Refining, and Packaging. On January 1, 2014, the first department, Mixing, had no beginning inventory. During January, 40,000 fl. oz. of chemicals were started in production. Of these, 32,000 fl. oz. were completed and 8,000 fl. oz. remained in process. Management estimates that the in-process units are approximately 60% complete. In the Mixing Department, all direct materials are added at the beginning of the production...

  • FIFO Method, Two-Department Analysis Muskoge Company uses a process-costing system. The company manufactures a product that...

    FIFO Method, Two-Department Analysis Muskoge Company uses a process-costing system. The company manufactures a product that is processed in two departments: Molding and Assembly. In the Molding Department, direct materials are added at the beginning of the process; in the Assembly Department, additional direct materials are added at the end of the process. In both departments, conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and...

  • FIFO Method, Equivalent Units, Unit Cost, Multiple Departments Fordman Company has a product that passes through...

    FIFO Method, Equivalent Units, Unit Cost, Multiple Departments Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December: Units to account for:   Units,...

  • Honeybutter, Inc., manufactures a product that goes through two departments prior to completion, the Mixing Department...

    Honeybutter, Inc., manufactures a product that goes through two departments prior to completion, the Mixing Department followed by the Packaging Department. The following information is available about work in the first department, the Mixing Department, during June. Percent Completed Units Materials Conversion 72.000 70% 358,500 Work in process, beginning 70% 40% Started into production Completed and transferred out Work in process, ending 348,500 82,000 75% 25% Materials Conversion Work in process, beginning $26,900 $ 9,400 Cost added during June $288,800...

  • FIFO Method, Two-Department Analysis Muskoge Company uses a process-costing system. The company manufactures a product that...

    FIFO Method, Two-Department Analysis Muskoge Company uses a process-costing system. The company manufactures a product that is processed in two departments: Molding and Assembly. In the Molding Department, direct materials are added at the beginning of the process; in the Assembly Department, additional direct materials are added at the end of the process. In both departments, conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and...

  • Grayson Comp

    Appendix: Normal and Abnormal Spoilage in Process Costing, Changes in Output Measures, Multiple DepartmentsGrayson Company produces an industrial chemical used for cleaning and lubricating machinery. In the Mixing Department, liquid and dry chemicals are blended to form slurry. Output is measured in gallons. In the Baking Department, the slurry is subjected to high heat, and the residue appears in irregular lumps. Output is measured in pounds. In the Grinding Department, the irregular lumps are ground into a powder, and this...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT