XYZ Company manufactures concrete by a series of four processes. All materials are added in the Crushing Department at the beginning of the process. From the Crushing Department, the materials pass through Sifting and Mixing, emerging as finished concrete. All inventories are costed by the First In, First Out Method.
The January 2019 data for the Crushing Department are as follows:
Inventory in process, Jan 1: 2,000 gallons:
Direct materials cost for 2,000 gallons 7,700$
Conversion costs, for 2,000 gallons, 25% complete 6,000$
Total Inventory in Process, Jan 1 13,700$
Direct materials cost for Jan: 15,200 gallons 98,800$
Direct labor cost for Jan 10,000$
Factory overhead applied for Jan 18,980$
Total production costs to account for 141,480$
Gallons transferred to Packaging in July includes:
Units in process on Jan 1: 16,000 gallons Unknown
Inventory in process, Jan 31: 1,200 gallons
50% completed as to conversion costs Unknown
Use the above information to prepare a cost of production report for the month of January 31, 2019.

Answer rating: 100% (QA)

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