Average and FIFO exercise. Rainbow Enterprises Inc. DATA: Use the process cost accounting system in its product line . Prepare a report on the movement and allocation of manufacturing costs of the system for the months of January and February 2020. January February

January February

Initial Work in Process in units 0 0

Started and completed 2,200 2,200

Completed and transfer out 2,200 965

Final work in process 0 1,235

Costs:

Direct Material $176,000 (100%) $176,000 (100%)

A/C 132,000 (100%) $102,300 (60%

Required:

1. Demonstrate the 5 steps for the two months, using the Average and FIFO methods. (Present the calculations.)