Problem 8 in

Chapter Assignment Required 1. Using the FIFo costing method, prepare a process cost report for the Miang Department for January nsight 2. Explain how the for the Cooking Department will differ from analysis for the Mixing Department LO4 Process Costing: One Process and Two Time Periods-FIFo Costing Method P 8. Honey Dews Company produces organic honey, which it sells to health food stores and restaurants. The company owns thousands of beehives. No direct materials other than honey are used. The production operation is a simple one. Impure honey is added at the beginning of the process and flows through a series of filterings, lead ing to a pure finished product. Costs of labor and overhead are incurred uniformly throughout the filtering process. Production data for April and May are as follows April May Beginning work in process inventory Units (liters 12,400 7,100 Direct materials 2,480 Conversion costs 5,110 Production during the period 288,000 310,000 Units started (liters) Direct materials $100,800 $117,800 S277,281 Conversion costs S251,550 Ending work in process inventory 16,900 12,400 Units (liters) From calculations at end of April The beginning work in process inventory for April was 80 percent complete for conversion costs, and ending work in process inventory was 20 percent complete. The ending work in process inventory for May was 30 percent complete for con version costs. Assume that there was no loss from spoilage or evaporation. Required 1. Using the FIFO method, prepare a process cost report for April 2. From the information in the process cost report, identify the amount that should be transferred out of the Work in Process Inventory account, and state where those dollars should be transferred 3. Repeat requirements i and 2 for May os Process costing: Average Costing Method and Two Time Periods Carton Corporation produces a line of beverage cartons. The production pro P 9 cess has been automated, so the product can now be produced in one operation ther than in the three operations that were needed before the company pu chased the automated machinery. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the pro cess. Operating data for July and August are as follows