Alicia Soft drink Company Limited uses a hybrid cost system. The preparation, cooking and packaging, respectively, are

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Question:

Alicia Soft drink Company Limited uses a hybrid cost system. The preparation, cooking and packaging, respectively, are its production department where FIFO inventory method has been applied. The following information is available for the month of December:

Preparation department, all production costs accrue uniformly throughout the process.

Beginning WIP 5,000 units(Stage of completion 70%)

Direct Materials $26,000; Direct Labor $10,900; Factory Overhead $7,100

Units commenced in December 2,000 units

Completion of units in December 1,500 units

Ending WIP (60% complete as to conversion) 500 units

Direct material introduced in December $74,000

Direct Labor cost $137,000 and Factory Overhead cost $100,000 added in

Cooking department, raw materials are introduced initially at the commencement of the process. Conversion costs accrue uniformly throughout the process. Zero defected policy has been announced. Quality assessor performs at stage of completion of 40%.

Beginning WIP 1,500 units

Direct Materials $9,600; Conversion (50% complete) $3,600

Units commenced in June 1,500 units

Completion of units in June 2,000 units

Ending WIP (80% complete as to conversion) 400 units

Material introduced in June $26,000; Conversion cost added in June $10,850

Packaging department, raw materials, and conversion costs accrue uniformly throughout the process.

Beginning WIP 2,400 units

Units commenced in June 2,600 units

Completion of units in June 4,400 units

Ending WIP (20% complete as to conversion) 600 units

The department has normal production capacity at 10,000 units. Standards per unit of product manufactured:

Material-A: 1 kgs @20 $ 20

Material-B: 2 kgs @10 $ 20

Labor 1 hours @ 15 15

Factory overhead: variable (as labor hour) 15

Production cost $ 70

During the month, these production cost took place:

a) Total material-A purchased on account and issued to production as direct materials during the month amounted to 11,000 kgs where its cost 19 per kg.

b) Total material-B purchased on account and issued to production as direct materials during the month amounted to 19,000 kgs where its cost 11 per kg.

c) Factory wages are $180,000. Number of working was 10,000 hours, where all payrolls classified as direct labor. d) Variable factory overhead occurred $120,000.

Required:

The cost of production report