Materials 100% complete, conversion cost 40% complete Materials 100% complete, conversion cost 20% complete arted in process during the period its completed and transferred to the next department its completed and transferred to finished goods inventory ork in process inventory, end: Materials 100% complete, conversion cost 60% complete Materials 100% complete, conversion cost 30% complete 4,000 6,000 40,000 34,000 38,000 10,000 2,000 sts: sts of beginning work in process inventory transferred in 40,000 sts of beginning work in process inventory from this dept. Materials 14,000 15,840 29,840 12,000 13,520 25,520 Conversion costs Total st added during the period: Materials Conversion costs tal 140,000 140,160 280,160 80,000 110,000 190,000

Materials 100% complete, conversion cost 40% complete Materials 100% complete, conversion cost 20% complete arted in process during the period its completed and transferred to the next department its completed and transferred to finished goods inventory ork in process inventory, end: Materials 100% complete, conversion cost 60% complete Materials 100% complete, conversion cost 30% complete 4,000 6,000 40,000 34,000 38,000 10,000 2,000 sts: sts of beginning work in process inventory transferred in 40,000 sts of beginning work in process inventory from this dept. Materials 14,000 15,840 29,840 12,000 13,520 25,520 Conversion costs Total st added during the period: Materials Conversion costs tal 140,000 140,160 280,160 80,000 110,000 190,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Assume the following data of ABC Corporation for the month of January, 2017

Requirement:

Prepare cost of production report using FIFO and Average Method for Department 1 and Department 2.

Department 1
Department 2
Units:
Work in process inventory, beginning:
Materials 100% complete, conversion cost 40% complete
Materials 100% complete, conversion cost 20% complete
4,000
6,000
Started in process during the period
Units completed and transferred to the next department
Units completed and transferred to finished goods inventory
Work in process inventory, end:
40,000
34,000
38,000
Materials 100% complete, conversion cost 60% complete
Materials 100% complete, conversion cost 30% complete
10,000
2,000
Costs:
Costs of beginning work in process inventory transferred in
Costs of beginning work in process inventory from this dept.
40,000
Materials
Conversion costs
Total
14,000
15,840
29,840
12,000
13,520
25,520
Cost added during the period:
Materials
Conversion costs
140,000
140,160
280,160
80,000
110,000
190,000
Total

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