Answered: Using the FIFO method, complete a…

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

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

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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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