### Cost of Production Report: Department A (December)**Austin Co.** manufactures a product called *Aster* in a three-process series. All materials are introduced at the beginning of the first process. Austin uses the first-in, first-out (FIFO) method of inventory costing. Below is the unit and cost data for the first process (Department A) for the month of December:| **Units** | **Completion** | **Cost** ||-----------------------|----------------|-------------|| Work in process inventory: | | || December 1 | 12,000 | 60% | $140,400 || December 31 | 5,000 | 40% | ? || **Started in December:** | **14,000** | | || Direct materials cost | | $106,400 || Conversion cost | | $70,310 || **Completed in December:** | **21,000** | | ? |**Required:**Prepare Austin's Department A cost of production report for December. Round cost per equivalent unit to two decimal places and the other answers to the nearest dollar. If an answer is zero, enter "0".---#### Explanation of the Data:- **Units and Completion:** The table lists the number of units at various stages of completion at the beginning and end of December. - On December 1, there were 12,000 units in process, with 60% completion. - On December 31, 5,000 units were still in process, with 40% completion. - During December, an additional 14,000 units were started. - A total of 21,000 units were completed during December.- **Cost Information:** - Materials cost for the process in December amounted to $106,400. - Conversion costs, which include labor and overhead, amounted to $70,310.#### Tasks:*Prepare Austin's Department A cost of production report for December* involves several steps:- Calculate the equivalent units for materials and conversion.- Assign costs to units completed and units still in process at month-end.- Apportion costs using the FIFO method.This report will help in understanding how the costs are distributed within the production process and assist in managerial decision-making.

Name: ### Cost of Production Report: Department A (December)**Austin Co.**
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Description: ### Cost of Production Report: Department A (December)**Austin Co.** manufactures a product called *Aster* in a three-process series. All materials are introduced at the beginning of the first process. Austin uses the first-in, first-out (FIFO) meth

An equivalent unit of production is the portion of output units that are partially completed at the…

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Austin Co. manufactures a product called Aster in a three-process series. All materials are introduced at the beginning of the first process. Austin uses the first-in, first-out method of inventory costing. Unit and cost data for the first process (Department A) for the month of December follow: Units Completion Cost Work in process inventory: December 1 12,000 60% $140,400 December 31 5,000 40% ? Started in December: 14,000 Direct materials cost 106,400 Conversion cost 70,310 Completed in December 21,000 Required: Prepare Austin's Department A cost of production report for December. Round cost per equivalent unit to two decimal places and the other answers to the nearest dollar. If an answer is zero, enter "O".

Austin Co. manufactures a product called Aster in a three-process series. All materials are introduced at the beginning of the first process. Austin uses the first-in, first-out method of inventory costing. Unit and cost data for the first process (Department A) for the month of December follow: Units Completion Cost Work in process inventory: December 1 12,000 60% $140,400 December 31 5,000 40% ? Started in December: 14,000 Direct materials cost 106,400 Conversion cost 70,310 Completed in December 21,000 Required: Prepare Austin's Department A cost of production report for December. Round cost per equivalent unit to two decimal places and the other answers to the nearest dollar. If an answer is zero, enter "O".

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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