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FIFO Production Cost Report

The following information is available for the Molding department for January.

Work in process beginning:
Units in process 22,000
Stage of completion for materials 80%
Stage of completion for labor and overhead 30%
Costs in work in process inventory:
Materials $168,360
Labor 67,564
Overhead 17,270
Total costs in beginning work in process $253,194
Units started into production in January 60,000
Units completed and transferred in January 58,000
Costs added to production:
Materials $264,940
Labor 289,468
Overhead 60,578
Total costs added into production in January $614,986
Work in process ending:
Units in process 24,000
Stage of completion for materials 50%
Stage of completion for labor and overhead 10%

Instructions

(a) Prepare a production cost report using the weighted-average method.

*(b) Show the equivalent units for materials and conversion costs if used FIFO instead of weighted-average.

Solution Preview

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Weighted average method
Statement of equivalent production EQUIVALENT UNITS
MATERIAL labour overhead
IN OUT % COMPLETE EQUIVALENT UNITS % COMPLETE EQUIVALENT UNITS % COMPLETE EQUIVALENT UNITS
OPENING WORK IN PROGRESS 22000 COMPLETED PRODUCTION 58000 100% 58000 100% 58000 100% 58000
UNITS INTRODUCED 60000 CLOSING WORK IN PROGRESS 24000 50% 12000 10% 2400 10% 2400
82000 82000 70000 60400 60400

Statement of cost cost incurred in the cost per unit
Elements of cost Equivalent units previous period current period total completed production
A B C B+C=D in $ per ...

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