Hogan Company manufactures drums of commercial cleaning solvents. Ingredients are added at the beginning of both departments. The following information relates to Hogan Company: CHAPTER 7: PROCESS COST II: EXPANDED CONCEPTS 335 DEPARTMENTS 2. Units: Beginning in process: Direct materials 100% complete; conversion costs 35% complete Direct materials 100% complete; conversion costs 40% complete Started in process during the period Units received from Department 1 Units added to production Transferred to finished goods inventory Ending units in process: Direct materials 100% complete; conversion costs 50% complete Direct materials 100% complete; conversion costs 60% complete 7,500 15,000 50,000 55,000 3,000 60,000 2,500 13,000 Costs: Beginning work-in-process inventory: From preceding department Direct materials Direct labor $ 20,000 40,000 10,000 $ 70,000 $ 35,000 10,000 60,000 15,000 $120,000 Factory overhead Total Added during the period: Direct materials Direct labor Factory overhead (applied) Total $ 80,000 180,000 40,000 $300,000 $ 30,000 200,000 45,000 $275,000 Required: Prepare a cost of production report for both departments under the: I Weighted average method 2 Fifo method.

Hogan Company manufactures drums of commercial cleaning solvents. Ingredients are added at the beginning of both departments. The following information relates to Hogan Company: CHAPTER 7: PROCESS COST II: EXPANDED CONCEPTS 335 DEPARTMENTS 2. Units: Beginning in process: Direct materials 100% complete; conversion costs 35% complete Direct materials 100% complete; conversion costs 40% complete Started in process during the period Units received from Department 1 Units added to production Transferred to finished goods inventory Ending units in process: Direct materials 100% complete; conversion costs 50% complete Direct materials 100% complete; conversion costs 60% complete 7,500 15,000 50,000 55,000 3,000 60,000 2,500 13,000 Costs: Beginning work-in-process inventory: From preceding department Direct materials Direct labor $ 20,000 40,000 10,000 $ 70,000 $ 35,000 10,000 60,000 15,000 $120,000 Factory overhead Total Added during the period: Direct materials Direct labor Factory overhead (applied) Total $ 80,000 180,000 40,000 $300,000 $ 30,000 200,000 45,000 $275,000 Required: Prepare a cost of production report for both departments under the: I Weighted average method 2 Fifo method.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 16E: Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The...

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Question

Please answer Required1 and2

WEIGHTED AVERAGE AND FIFO
Hogan Company manufactures drums of commercial cleaning solvents. Ingredients are
added at the beginning of both departments.
The following information relates to Hogan Company:
CHAPTER 7: PROCESS COST Il: EXPANDED CONCEPTS 335
DEPARTMENTS
Units:
Beginning in process:
Direct materials 100% complete; conversion costs 35% complete
Direct materials 100% complete; conversion costs 40% complete
Started in process during the period
Units received from Department 1
Units added to production
Transferred to finished goods inventory
Ending units in process:
Direct materials 100% complete; conversion costs 50% complete
Direct materials 100% complete; conversion costs 60% complete
7,500
15,000
50,000
55,000
3,000
60,000
2,500
13,000
Costs:
Beginning work-in-process inventory:
From preceding department
Direct materials
Direct labor
0 $ 35,000
$ 20,000
40,000
10,000
$ 70,000
10,000
60,000
Factory overhead
15,000
$120,000
Total
Added during the period:
Direct materials
Direct labor
Factory overhead (applied)
Total
$ 80,000
180,000
40,000
$300,000
$ 30,000
200,000
45,000
$275,000
Required: Prepare a cost of production report for both departments under the:
I Weighted average method
2 Fifo method.

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step by step please. parts i-iv
SUBJECT: COST ACCOUNTING
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4C.
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