Problem 8-49 Prepare a Production Cost Report: FIFO Method (LO 8-4, 5)

Kansas Supplies is a manufacturer of plastic parts that uses the weighted-average process costing method to account for costs of production. It produces parts in three separate departments: Molding, Assembling, and Packaging. The following information was obtained for the Assembling Department for the month of April.

Work in process on April 1 had 75,000 units made up of the following:

	Amount			Degree of Completion
Prior department costs transferred in from the Molding Department	$	192,000			100	%
Costs added by the Assembling Department
Direct materials	$	120,000			100	%
Direct labor		43,200			60	%
Manufacturing overhead		27,600			50	%
	$	190,800
Work in process, April 1	$	382,800

During April, 375,000 units were transferred in from the Molding Department at a cost of $960,000. The Assembling Department added the following costs:

Direct materials	$	576,000
Direct labor		216,000
Manufacturing overhead		113,400
Total costs added	$	905,400

Assembling finished 300,000 units and transferred them to the Packaging Department.

At April 30, 150,000 units were still in work-in-process inventory. The degree of completion of work-in-process inventory at April 30 was as follows:

Direct materials	90	%
Direct labor	70
Manufacturing overhead	35

Required:

a. Prepare a production cost report using FIFO: (Some of the values are completed and correct already.)

KANSAS SUPPLIES
Assembling Department
Production Cost ReportFIFO
Flow of Production Units	Compute Equivalent Units
	Physical Units	Prior Department Costs	Materials	Labor	Manufacturing Overhead
Units to be accounted for:
Beginning WIP inventory	75,000
Units started this period	375,000
Total units to be accounted for	450,000
Units accounted for:
Units completed and transferred out:
From beginning inventory	75,000	0	0		37,500
Started and completed currently	225,000	225,000	225,000	225,000	225,000
Units in ending WIP inventory	150,000	150,000	135,000	105,000	52,500
Total units accounted for	450,000	375,000	360,000	330,000	315,000

Costs		DETAILS
	Total Costs	Prior Department Costs	Materials	Labor	Manufacturing Overhead
Costs to be accounted for:
Costs in beginning WIP inventory	$382,800	$192,000	$120,000	$43,200	$27,600
Current period costs	1,865,400	960,000	576,000	216,000	113,400
Total costs to be accounted for	$2,248,200	$1,152,000	$696,000	$259,200	$141,000
Cost per equivalent unit:
Prior department costs		$2.56
Materials			$1.60
Labor
Manufacturing overhead

	DETAILS
	Total Costs	Prior Department Costs	Materials	Labor	Manufacturing Overhead
Costs accounted for:
Costs assigned to units transferred out:
Costs from beginning WIP inventory	$382,800	$192,000	$120,000	$43,200	$27,600
Current costs added to complete beginning WIP inventory:
Prior department costs		0
Materials			0
Labor
Manufacturing overhead
Total costs from beginning inventory	$382,800
Current costs of units started and completed:
Prior department costs	0
Materials	0
Labor	0
Manufacturing overhead	0
Total costs of units started and completed	$0
Total costs of units transferred out	$0
Costs assigned to ending WIP inventory:
Prior department costs	$0	384,000
Materials	-		216,000
Labor	0
Manufacturing overhead	0
Total ending WIP inventory	$0
Total costs accounted for	$382,800	$576,000	$336,000	$43,200	$27,600