XYZ Company uses two processes for mixing in department A and firing in department B to produce
Question:
XYZ Company uses two processes for mixing in department A and firing in department B to produce a particular product. Direct materials are introduced at the beginning of the process in department and additional materials are added at the firing process in department B. Conversion costs are distributed evenly throughout the production process. As the process in department A is completed goods are transferred in department B and as goods are completed in department they are transferred to finished goods inventory. Data for the mixing department for the month of November 2003 was provided as follows:
Required:
a) Determine the costs of goods transferred out of department A
b) Determine the ending WIP inventory (use both WAM and FIFO methods)
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones