Using the FIFO method, complete a production report below for Department A.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Seacrest Company uses a process costing system. The company manufactures a product that is processed in two departments: A and B. As
work is completed, it is transferred out. All inputs are added uniformly in Department A. The following summarizes the production activity
and costs for November:
Department A
Beginning Inventories:
Units in BWIP 5,000
Costs of beginning WIP (BWIP)
Direct materials $10,000
Conversion costs $6,900
Current production (in November):
Units started 25,000
Units transferred out 28,000
Costs (in November):
Direct materials $57,800
Conversion costs $95,220
Additional Cost information:
Unit cost for Department A $5.54
Cost of EWIP $8,870
Cost to finish units $16,632.60
1. Using the FIFO method, complete a production report below for Department A.
Seacrest Company--Department A
Production Report
For the Month of November
Units to account for:
Units in BWIP
Units started in November
Total units to account for
Units completed and transferred out:
Started and completed
From BWIP
Units in EWIP
Total units accounted for
2. Using the FIFO method, complete a cost schedule for Department A.
Seacrest Company--Department A
Cost Schedule
For the Month of November
Costs to account for:
Costs of BWIP
Costs incurred during November
Total costs to account for
Costs accounted for:
From prior period (Costs of BWIP)
From current period (Cost to finish units)
Costs of units started and completed
Costs of EWIP
Total costs accounted for
work is completed, it is transferred out. All inputs are added uniformly in Department A. The following summarizes the production activity
and costs for November:
Department A
Beginning Inventories:
Units in BWIP 5,000
Costs of beginning WIP (BWIP)
Direct materials $10,000
Conversion costs $6,900
Current production (in November):
Units started 25,000
Units transferred out 28,000
Costs (in November):
Direct materials $57,800
Conversion costs $95,220
Additional Cost information:
Unit cost for Department A $5.54
Cost of EWIP $8,870
Cost to finish units $16,632.60
1. Using the FIFO method, complete a production report below for Department A.
Seacrest Company--Department A
Production Report
For the Month of November
Units to account for:
Units in BWIP
Units started in November
Total units to account for
Units completed and transferred out:
Started and completed
From BWIP
Units in EWIP
Total units accounted for
2. Using the FIFO method, complete a cost schedule for Department A.
Seacrest Company--Department A
Cost Schedule
For the Month of November
Costs to account for:
Costs of BWIP
Costs incurred during November
Total costs to account for
Costs accounted for:
From prior period (Costs of BWIP)
From current period (Cost to finish units)
Costs of units started and completed
Costs of EWIP
Total costs accounted for
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Where does the $23,000 for the started and completed units come from, where does the 5,000 from BWIP come from, and where does the units in EWIP come from?
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