(Appendix 6A) FIFO: Production Report Aztec Inc. produces soft drinks. Mixing is the first department, and its output is measured in gallons. Aztec uses the FIFO method. All manufacturing costs are added uniformly. For July, the mixing department provided the following information: Production: Units in process. July 1. 40% complete Units completed and transferred out Units in process, July 31, 65% complete Costs: Work in process, July 1 Costs added during July Required: Prepare a production report. Physical flow: Aztec Inc. Mixing Department Production Report For the Month of July (FIFO Method) Unit Information Units to account fort Units in beginning WIP Units started Total units to account for Units to account for: Units started and completed From beginning WID Unitsin ending WIP Total units to account for Equivalent units: Started and completed To complete beginning WIP Units in ending WIP Total equivalent units Cost Information Costs to account for: Costs in beginning WIP Costs added by department Total costs to account for Cost per equivalent unit Costs accounted for: Transferred out: Units started and completed Units in beginning work in process: From prior period From current period Total cost transferred out Goods in ending work in process Total costs accounted for $ Units 18.000 138,000 156.000 Units 122.000 18.000 16.000 156.000 ✓ Units 122.000 ✓ 16.000 X 16.000 X Dollars 36.000 415.280 451.280 ✓ Total 122.000 X 18.000 gallons 140,000 gallons 16,000 gallons $36.000 415.280
(Appendix 6A) FIFO: Production Report Aztec Inc. produces soft drinks. Mixing is the first department, and its output is measured in gallons. Aztec uses the FIFO method. All manufacturing costs are added uniformly. For July, the mixing department provided the following information: Production: Units in process. July 1. 40% complete Units completed and transferred out Units in process, July 31, 65% complete Costs: Work in process, July 1 Costs added during July Required: Prepare a production report. Physical flow: Aztec Inc. Mixing Department Production Report For the Month of July (FIFO Method) Unit Information Units to account fort Units in beginning WIP Units started Total units to account for Units to account for: Units started and completed From beginning WID Unitsin ending WIP Total units to account for Equivalent units: Started and completed To complete beginning WIP Units in ending WIP Total equivalent units Cost Information Costs to account for: Costs in beginning WIP Costs added by department Total costs to account for Cost per equivalent unit Costs accounted for: Transferred out: Units started and completed Units in beginning work in process: From prior period From current period Total cost transferred out Goods in ending work in process Total costs accounted for $ Units 18.000 138,000 156.000 Units 122.000 18.000 16.000 156.000 ✓ Units 122.000 ✓ 16.000 X 16.000 X Dollars 36.000 415.280 451.280 ✓ Total 122.000 X 18.000 gallons 140,000 gallons 16,000 gallons $36.000 415.280
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:(Appendix 6A) FIFO; Production Report
Aztec Inc. produces soft drinks. Mixing is the first department, and its output is measured in gallons. Aztec uses the FIFO method. All manufacturing costs are added uniformly. For July, the mixing department provided the following information:
Production:
Units in process, July 1, 40% complete
Units completed and transferred out
Units in process, July 31, 65 % complete
Costs:
Work in process, July 1
Costs added during July
Required:
Prepare a production report.
Physical flow:
Aztec Inc. Mixing Department
Production Report
For the Month of July (FIFO Method)
Unit Information
Units to account for
Units in beginning WIP
Units started
Total units to account for
Units to account for:
Units started and completed
From beginning WIP
Units in ending WIP
Total units to account for
Equivalent units:
Started and completed
To complete beginning WIP
Units in ending WIP
Total equivalent units
Cost Information
Costs to account for:
Costs in beginning WIP
Costs added by department
Total costs to account for
Cost per equivalent unit
Costs accounted for:
Transferred out:
Units started and completed
Units in beginning work in process:
From prior period
From current period
Total cost transferred out
Goods in ending work in process
Total costs accounted for
s
€
Units
18.000
138,000 ✓
156,000 ✓
Units
122.000 ✓
18,000
16,000
156.000
Units
122,000
16,000 X
16,000 X
Dollars
36,000
415.280
451.280
Total
122,000 X
M
18,000 gallons
140,000 gallons
16,000 gallons
$36,000
415,280
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