Pet Products Company uses an automated process to manufacture its pet replica products. For June, the company
Question:
Pet Products Company uses an automated process to manufacture its pet replica products. For June, the company had the following activities:
Beginning work-in-process inventory | 4500 items, 1/4 complete |
Units placed in production | 15 000 units |
Units completed | 17 500 units |
Ending work-in-process inventory | 2000 items, 3/4 complete |
Cost of beginning work in process | $5250 |
Direct material costs, current | $16 500 |
Conversion costs, current | $23 945 |
Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process.
Required:
a) Prepare a production cost worksheet using the FIFO method.
b) What is the difference between a weighted-average method of process costing and a first- in, first-out method of process costing?
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen