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 Quantity (pounds) January 1 January 31 Quantity Cost (pounds) None. Molding department Finishing department 5,000 $ 15,000 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: Direct Materials Cost $ 450,000 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. Conversion $ 90,000 None 80,290 ?
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 Quantity (pounds) January 1 January 31 Quantity Cost (pounds) None. Molding department Finishing department 5,000 $ 15,000 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: Direct Materials Cost $ 450,000 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. Conversion $ 90,000 None 80,290 ?
Chapter1: Financial Statements And Business Decisions
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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
Quantity (pounds)
Molding department
January 1 January 31
Quantity
(pounds)
Costs of Production
Molding department
Finishing department
Cost
None
Finishing department
5,000
$ 15,000
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:
Direct
Materials
Cost
Conversion
$ 450,000
None
2,000
?
$ 90,000
80,290
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.
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