Al Habib manufacturer uses the FIFO method in its process costing system. The following information is available
Question:
Al Habib manufacturer uses the FIFO method in its process costing system. The following information is available for the company for the month of February 2023. All materials are added at the start of production. All spoilage is abnormal and is detected by the final inspection at the end of the process.
Beginning work in process (80% complete) | 9,500 units |
Units Started | 42,000 units |
Ending work in process (55% complete) | 18,000 units |
Completed and transferred out | 31,000 units |
Beginning work-in-process costs: | |
Materials | $14,000 |
Conversion | $38,200 |
Current costs: | |
Materials | $50,750 |
Conversion | $173,130 |
Required:
Using the Microsoft Excel program, prepare a cost of production report for the company for the month of February 2023. Your report must be completed in a good format with all four steps in a typical process costing system.
Managerial Accounting Decision Making and Motivating Performance
ISBN: 978-0137024872
1st edition
Authors: Srikant M. Datar, Madhav V. Rajan