FIFO cost method; cost of production summary
Bristol Beverages Inc. uses the FIFO cost method and adds all materials, labor, and factory overhead evenly to production. A record of the factory operations for October follows:
Production Summary Units
Work in process, beginning of month, one-fourth completed . . . 5,000
Started in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,000
Finished and transferred to stockroom . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,000
Work in process, end of month, three-fourths completed. . . . . . . . 7,000
Cost Summary
Work in process, beginning of month . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000
Materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000
Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000
Factory overhead. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000
Required:
Prepare a cost of production summary for the month.
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