Hogan Company manufactures drums of commercial cleaning solvents. Ingredients are added at the beginning of both...

  

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Hogan Company manufactures drums of commercial cleaning solvents. Ingredients are added at the beginning of both departments. The following information relates to Hogan Company: DEPARTMENTS 2. Units: Beginning in process: Direct materials 100% complete; conversion costs 35% complete Direct materials 100% complete; conversion costs 40% complete Started in process during the period Units received from Department 1 Units added to production Transferred to finished goods inventory Ending units in process: Direct materials 100% complete; conversion costs 50% complete Direct materials 100% complete; conversion costs 60% complete 7,500 15,000 50,000 55,000 3,000 60,000 2,500 13,000 Costs: Beginning work-in-process inventory: From preceding department Direct materials Direct labor Factory overhead $ 20,000 40,000 10,000 $ 70,000 $ 35,000 10,000 60,000 15,000 $120,000 Total Added during the period: Direct materials Direct labor Factory overhead (applied) Total $ 80,000 180,000 40,000 $300,000 $ 30,000 200,000 45,000 $275,000 Required: Prepare a cost of production report for both departments under the: 1 Weighted average method 2 Fifo method. Hogan Company manufactures drums of commercial cleaning solvents. Ingredients are added at the beginning of both departments. The following information relates to Hogan Company: DEPARTMENTS 2. Units: Beginning in process: Direct materials 100% complete; conversion costs 35% complete Direct materials 100% complete; conversion costs 40% complete Started in process during the period Units received from Department 1 Units added to production Transferred to finished goods inventory Ending units in process: Direct materials 100% complete; conversion costs 50% complete Direct materials 100% complete; conversion costs 60% complete 7,500 15,000 50,000 55,000 3,000 60,000 2,500 13,000 Costs: Beginning work-in-process inventory: From preceding department Direct materials Direct labor Factory overhead $ 20,000 40,000 10,000 $ 70,000 $ 35,000 10,000 60,000 15,000 $120,000 Total Added during the period: Direct materials Direct labor Factory overhead (applied) Total $ 80,000 180,000 40,000 $300,000 $ 30,000 200,000 45,000 $275,000 Required: Prepare a cost of production report for both departments under the: 1 Weighted average method 2 Fifo method.

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Preparation of production report weighted average method Department 1 Input Particulars Output Materials Labour Overhead Units units units units 7500 ... View the full answer