Shankar Manufacturing Company produces a product that is manufactured in two departments. The product is cut out of wood in the Cutting Department and then transferred to the Assembly Department, where parts purchased from outside vendors are added to the base unit. Because only one product is manufactured by the company, a process cost system is used. The company uses the fifo cost flow assumption to account for its work in process inventories. Data related to July operations in the Cutting Department are:

At the end of June, there were 100 units in process in the Cutting Department, 60% complete as to materials and 20% complete as to conversion cost. During July, 850 units were transferred from the Cutting Department to the Assembly Department. At the end of July, there were 150 units still in process in the Cutting Department, 100% complete as to materials, 60% complete as to labor, and 50% complete as to overhead cost.
Required:
Prepare a July cost of production report on a fifo basis for the Cutting Department.

Transcribed Image Text:

Beginning Added Inventory This Period Costs charged to the department: Materials .. Factory overhead.. $2940 $46,530 18.860 27,150 390 585