The following data were taken from the books of Denver Company which manufactures a single product...

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The following data were taken from the books of Denver Company which manufactures a single product through a two-department manufacturing process. machining and finishing. In the production process, materials are added to the product at the beginning in both departments. Normal spoilage occurs in the finishing department, and the spoiled units are not detected until units are completed and inspected. Units: Finishing Machining Department Department Beginning inventory 0 20,000 Stage of completion 50% Transferred in 0 60,000 Started in production 80,000 0 Transferred out 60,000 60,000 Ending inventory 20,000 18,000 Stage of completion 25% 70% Spoiled (lost) units 0 2,000 Beginning inventory costs: Direct materials Conversion costs Prior department costs 000 P 28,000 27,500 118,000 Current costs: Direct materials P 320,000 90,000 Conversion costs 130,000 193,800 Requirements: Prepare cost of production report for April, 2019 using: 1. FIFO method 2. Average method The following data were taken from the books of Denver Company which manufactures a single product through a two-department manufacturing process. machining and finishing. In the production process, materials are added to the product at the beginning in both departments. Normal spoilage occurs in the finishing department, and the spoiled units are not detected until units are completed and inspected. Units: Finishing Machining Department Department Beginning inventory 0 20,000 Stage of completion 50% Transferred in 0 60,000 Started in production 80,000 0 Transferred out 60,000 60,000 Ending inventory 20,000 18,000 Stage of completion 25% 70% Spoiled (lost) units 0 2,000 Beginning inventory costs: Direct materials Conversion costs Prior department costs 000 P 28,000 27,500 118,000 Current costs: Direct materials P 320,000 90,000 Conversion costs 130,000 193,800 Requirements: Prepare cost of production report for April, 2019 using: 1. FIFO method 2. Average method

Answer rating: 100% (QA)

To prepare the cost of production report for April 2019 using the FIFO FirstIn FirstOut method and the Average method we need to calculate the equivalent units of production and allocate the costs acc... View the full answer