WIN COMPANYThe company manufactures a specialized product in Department 1 which it transfers to Department 2 where material isadded at the end of the process. A normal loss occurs early in the processing. April production and cost data forDepartment 2 are as follows:Production record (in units):In process, April 1-75% complete for processingcostReceived from Department 1Completed and transferred to finished goodsLost in processing (normal)In process, April 30-2/3 complete for processingcostCost Record:Work in process inventory, April 1 for the 4,000units:Preceding department costThis department costCost from preceding department during AprilThis department Material cost for April4,00020,00016,0002,0006,000P 6202,000P2,6203,6004,80010,200This department Processing cost for AprilPrepare a Production Cost Report under the FIFO method and answer the following:

Introduction: Cost of production: Production costs are the total expenses incurred by entities in…

Answered: Prepare a Production Cost Report under…

Business

Accounting

Prepare a Production Cost Report under the FIFO method and answer the following:

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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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

WIN COMPANY
The company manufactures a specialized product in Department 1 which it transfers to Department 2 where material is
added at the end of the process. A normal loss occurs early in the processing. April production and cost data for
Department 2 are as follows:
Production record (in units):
In process, April 1-75% complete for processing
cost
Received from Department 1
Completed and transferred to finished goods
Lost in processing (normal)
In process, April 30-2/3 complete for processing
cost
Cost Record:
Work in process inventory, April 1 for the 4,000
units:
Preceding department cost
This department cost
Cost from preceding department during April
This department Material cost for April
4,000
20,000
16,000
2,000
6,000
P 620
2,000
P2,620
3,600
4,800
10,200
This department Processing cost for April
Prepare a Production Cost Report under the FIFO method and answer the following:

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