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Bhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in the manufacturing. The molding department fills the molds with hot liquid plastic that is left to cool and then opens them. The finishing department removes the plastic frame from the mold and strips the edges of the frames of extra plastic. The following information is available for the month of January: Work-in-Process Inventory Molding department Finishing department January 1 Quantity (pounds) None 5,000 Cost Direct Materials $ 510,000 $ 18,000 January 31 Quantity (pounds) None 2,000 The WIP Inventory in the finishing department is estimated to be 40% complete for conversion both at the beginning and end of January. Costs of production for January follow: Cost Conversion $ 120,000 126,910 ? Costs of Production Molding department Finishing department The molding department started 50,000 pounds of product in January. The firm uses the FIFO method of process costing. Required 1. Prepare a production cost report for the molding department. 2. Prepare a production cost report for the finishing department.

Bhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in the manufacturing. The molding department fills the molds with hot liquid plastic that is left to cool and then opens them. The finishing department removes the plastic frame from the mold and strips the edges of the frames of extra plastic. The following information is available for the month of January: Work-in-Process Inventory Molding department Finishing department January 1 Quantity (pounds) None 5,000 Cost Direct Materials $ 510,000 $ 18,000 January 31 Quantity (pounds) None 2,000 The WIP Inventory in the finishing department is estimated to be 40% complete for conversion both at the beginning and end of January. Costs of production for January follow: Cost Conversion $ 120,000 126,910 ? Costs of Production Molding department Finishing department The molding department started 50,000 pounds of product in January. The firm uses the FIFO method of process costing. Required 1. Prepare a production cost report for the molding department. 2. Prepare a production cost report for the finishing department.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Bhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in the manufacturing. The molding department fills the molds with hot liquid plastic that is left to cool and then opens them. The finishing department removes the plastic frame from the mold and strips the edges of the frames of extra plastic. The following information is available for the month of January: Work-in-Process Inventory Molding department Finishing department January 1 Costs of Production Molding department Finishing department Quantity (pounds) None 5,000 Cost Direct Materials $ 510,000 $ 18,000 January 31 Quantity (pounds) None 2,000 The WIP Inventory in the finishing department is estimated to be 40% complete for conversion both at the beginning and end of January. Costs of production for January follow: Conversion $ 120,000 126,910 Cost ? Required 1. Prepare a production cost report for the molding department. 2. Prepare a production cost report for the finishing department. The molding department started 50,000 pounds of product in January. The firm uses the FIFO method of process costing.
Transcribed Image Text:Bhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in the manufacturing. The molding department fills the molds with hot liquid plastic that is left to cool and then opens them. The finishing department removes the plastic frame from the mold and strips the edges of the frames of extra plastic. The following information is available for the month of January: Work-in-Process Inventory Molding department Finishing department January 1 Costs of Production Molding department Finishing department Quantity (pounds) None 5,000 Cost Direct Materials $ 510,000 $ 18,000 January 31 Quantity (pounds) None 2,000 The WIP Inventory in the finishing department is estimated to be 40% complete for conversion both at the beginning and end of January. Costs of production for January follow: Conversion $ 120,000 126,910 Cost ? Required 1. Prepare a production cost report for the molding department. 2. Prepare a production cost report for the finishing department. The molding department started 50,000 pounds of product in January. The firm uses the FIFO method of process costing.
Prepare a production cost report for the finishing department. (Round "Cost per EU" answers to 2 decimal places. Negative amounts should be indi minus sign.) Finishing Department Input: Beginning WIP Direct materials Conversion Units started or trans-in Total to account for Output: Units finished or trans-out Ending WIP Direct materials Conversion Total accounted for Total equivalent units Beginning WIP Current costs Total Divide by equivalent units FIFO Cost per EU Finished goods Prior period costs in Beginning WIP Current period cost to complete Beg WIP Direct Materials Conversion Units started and finished Total Ending WIP Trans-in Direct materials Conversion Total costs accounted for $ $ Production Information Physical Units 5,000✔ 0✓ 0✔ 50,000✔ 55,000 53,000✔ 2,000✔ 0✔ 0 55,000 Trans-in Completion Percentage 53,000 0✓ 40 % 100 % Unit Cost Determination Materials Conversion 3,000 100 % 48,000 40 % 630,000✔ 630,000 $ 50,000✔ 12.60 $ 0.00 $ 0✔ 0 $ 0✓ units Equiv units Equiv units 2,000 units 100 % 0 % 40 % 51,800✔ Transferred- in Costs $ 2.45 $ $ 0✔ 0✓ 50,000✔ 0✔ 18,000✔ 126,910✔ 756,910 126,910 $ 774,910 Total 50,000 0✔ Completed and Trans- Out 0✔ 0✔ 15.05 18,000 0 0X 0x FIFO Equivalent Units Direct Materials 18,000 $ 0✔ 0✔ 0✔ 0✔ 0✔ Cost Assignment Ending Work in Process 0✔ 0✔ 0 0✔ 0✔ 25,200✔ Conversion $ $ 0✓ 1,960 ✓ 27,160 $ 0✓ (2,000) ✔ 0✔ 0✔ 53,000✔ 0✔ 800✔ 51,800 Total 0 0 18,000 0 25,200 0 1,960 45,160
Transcribed Image Text:Prepare a production cost report for the finishing department. (Round "Cost per EU" answers to 2 decimal places. Negative amounts should be indi minus sign.) Finishing Department Input: Beginning WIP Direct materials Conversion Units started or trans-in Total to account for Output: Units finished or trans-out Ending WIP Direct materials Conversion Total accounted for Total equivalent units Beginning WIP Current costs Total Divide by equivalent units FIFO Cost per EU Finished goods Prior period costs in Beginning WIP Current period cost to complete Beg WIP Direct Materials Conversion Units started and finished Total Ending WIP Trans-in Direct materials Conversion Total costs accounted for $ $ Production Information Physical Units 5,000✔ 0✓ 0✔ 50,000✔ 55,000 53,000✔ 2,000✔ 0✔ 0 55,000 Trans-in Completion Percentage 53,000 0✓ 40 % 100 % Unit Cost Determination Materials Conversion 3,000 100 % 48,000 40 % 630,000✔ 630,000 $ 50,000✔ 12.60 $ 0.00 $ 0✔ 0 $ 0✓ units Equiv units Equiv units 2,000 units 100 % 0 % 40 % 51,800✔ Transferred- in Costs $ 2.45 $ $ 0✔ 0✓ 50,000✔ 0✔ 18,000✔ 126,910✔ 756,910 126,910 $ 774,910 Total 50,000 0✔ Completed and Trans- Out 0✔ 0✔ 15.05 18,000 0 0X 0x FIFO Equivalent Units Direct Materials 18,000 $ 0✔ 0✔ 0✔ 0✔ 0✔ Cost Assignment Ending Work in Process 0✔ 0✔ 0 0✔ 0✔ 25,200✔ Conversion $ $ 0✓ 1,960 ✓ 27,160 $ 0✓ (2,000) ✔ 0✔ 0✔ 53,000✔ 0✔ 800✔ 51,800 Total 0 0 18,000 0 25,200 0 1,960 45,160
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