Brainerd Corporation adds all materials at the beginning of production. On August 1, 2019, 1,500 gallons of

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Brainerd Corporation adds all materials at the beginning of production. On August 1, 2019, 1,500 gallons of its product were in production in the first department. During the month of August, 12,000 gallons were put into production. On August 31, 1,000 gallons were still in production. The ending inventory is estimated to be 60 percent complete as to labor and overhead. Cost data for the month follows:

Materlals Labor Overhead $ 8,960 52,870 $ 3,250 22,950 Beginning inventory of work in process Added during August $ 5,80


INSTRUCTIONS
Prepare a cost of production report for the month of August, assuming that the average cost method is used.
Analyze: How many gallons of product will be held as beginning inventory of work in process on September 1 for the first department? What is the total cost for this quantity of product?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  book-img-for-question

College Accounting Chapters 1-30

ISBN: 978-1259631115

15th edition

Authors: John Price, M. David Haddock, Michael Farina

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