Sherbrooke Toboggan Company manufactures toboggans for the Canadian market. The product goes through three manufacturing processes: forming, sealing, and assembly. In the forming department, the wood is shaped into the proper form; in the sealing department, a lacquer is applied to seal the wood and give it a satin finish; in the assembly department, the wood is assembled into the final product and cushions and rope are attached to the toboggan.
The company uses the FIFO method of costing to calculate production costs, and materials are added in the sealing department at the very beginning of the process. During the month of August, the following information was determined for the sealing department:

Required:
1. Prepare a cost of production report for the sealing department for the month of August, including all five steps. (Take all calculations to four decimal places.)
2. Explain how the calculations are different in this problem as compared to Problem 6-45.

Transcribed Image Text:

BWIP: Units 2,000 Percentage complete Costs: 60% Transferred in s105,000 $3,950 $12,350 Materials Conversion Current production Units started 15,000 Costs: $750,000 $30,000 $125,500 Transferred in Materials Conversion EWIP: Units 5,000 35% Percentage complete