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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcce02ba2-8ae7-49bd-8ad4-c44dcddfb4aa%2F88f686cd-0887-453a-a543-79a2ad1c8f4e%2Fac1rcsl_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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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