Chapter 20, Problem P20A.37APGA

To determine

Production Cost refers to the total cost incurred by the business during the manufacturing its final goods or providing its services. It may also calculate for a particular department for calculating per unit cost for that department’s final Goods.

Cost of production Report determines per unit cost of manufactured goods or providing services. It summarizes the total costs of direct material & conversion cost. It also shows all the cost that is incurred by the department during the manufacturing its final outputs.

FIFO (first-in, first-out) is an inventory cost flow whereby the first goods purchased are assumed to be the first goods sold so that the ending inventory consists of the most recently purchased goods.

REQUIREMENT 1

To Determine:

Per Unit Cost and value of closing Work in Process and also Value finished Goods

To determine

Requirement 2:

To Indicate:

Journal Entries for the given situation