Process Costing: FIFO Costing Method

Using the excel spreadsheet and data attached, answer the following questions.

1. Using the FIFO costing method, prepare a process cost report for the Mixing Department for January.

2. Explain how the analysis for the Cooking Department will differ from the analysis for the Mixing Department.

Process Costing: FIFO Costing Method Canned fruits and vegetables are the main products made by Yummy Foods, Inc. All direct materials are added at the beginning of the Mixing department's process. When the ingredients have been mixed, they go to the Cooking Department. There the mixture is heated to 100 deg. Celsius and simmered for 20 minutes. When cooled, the mixture goes to the canning department for final processing. Throughout the operations, direct labor and overhead costs are incurred uniformly. No direct materials are added in the Cooking Department. Cost data and other information for the Mixing Department for January are as follows. Production Cost Data Mixing Department: Beginning Inventory Current Period Costs Work In Process Inventory: Beginning Inventory (40% complete in prior period) Ending Inventory (60% complete) Unit Production Data: Units Started During January Units Transferred Out During January Direct Materials Conversion Costs $28,560 $450,000 5,000 Liters 6,000 Liters 90,000 Liters 89,000 Liters Assume that no spoilage or evaporation loss took place during January. Required 1. Using the FIFO costing method, prepare a process cost report for the Mixing Department for January. 2. Explain how the analysis for the Cooking Department will differ from the analysis for the Mixing Department. $5,230 $181,200