Refer to the information from Problem 6.46.
Information from Problem 6.46
Physical Units
Beginning WIP (25% complete) ...................................................11,000
Started during January ..............................................................74,000
Total to account for ................................................................85,000
Good units completed and transferred out during current period:
From beginning work in process ................................................11,000
Started and completed ............................................................50,000
Spoiled units............................................................................8,000
Ending WIP (75% complete) .......................................................16,000
Total accounted for .................................................................85,000
Costs
Beginning WIP:
Direct materials .................................................................$220,000
Conversion costs ..................................................................30,000
Total beginning WIP ..............................................................250,000
Costs added during current period:
Direct materials ...............................................................1,480,000
Conversion costs ................................................................942,000
Costs to account for ........................................................$2,672,000
REQUIRED
A. Explain how a standard cost report would differ from a FIFO cost report.
B. Under what circumstances would a standard cost report be preferable to a FIFO cost report? Explain your answer.