Hello,

Hello,

I have a question from my accounting homework under using FIFO method in process costing. I tried solving it but its not adding up.

Thanks.

Jasmine

Thanks.

Jasmine

Hrencher Oil Company, LLC, a tiny oil company, produces a product that passes through three processes: Mixing, Refining, and Finishing. Direct materials are added at the beginning of the process. The following information was obtained for the Mixing department for December 2017: Work in process, December 1, had the following costs Direct materials Direct labor Overhead $ 28,000 S 22,000 S 18,000 During the month of December, the following costs were added to production: Direct materials Direct labor Overhead $ 19,000 S 47,000 S 31,000 Units in process at the beginningof the month (100% complete as to materials 60% complete as to conversion) 10,000; units started during the month, 38,000, and units in process at the end of the month (100% complete s to materials, 25% complete as to conversion), 4,000. Required: Prepare a production cost report for the month ended December 31, using the FIFO method