Refer to the information presented in Exercise 6.32.
Information presented in Exercise 6.32.
Felix and Sons is a toy maker that produces Flying Flingbats, a soft foam rubber weapon. All direct materials are added at the beginning of production, and conversion costs are incurred evenly throughout production. Conversion was 75% complete for the 8,000 units in WIP on December 1 and 50% complete for the 6,000 units in WIP on December 31. During the month, 12,000 Flingbats were completed and transferred out as fi nished goods. Following is a summary of the costs for the period:
.....................................Direct Materials ...................Conversion Costs
Work in process, December 1 ...........$19,200............................... $ 7,200
Costs added in December .................31,200................................ 21,600
REQUIRED
Prepare a process cost report under the FIFO method.