Canned fruits and vegetables are the main products made by Good Foods. Inc. All direct materials are added at the beginning of the Mixing Department's process. When the ingredients have been mixed, they go to simmered for 20 minutes. When cooled, the mixture goes to the Canning
Department for final rocessing.
Throughout the Operations, direct labor and overhead costs are incurred uniformly. No direct materials are added in the Cooking Department.
Cost data and other information for the Mixing Dept. for the month of January appear at the top of the opposite page. The company experienced no spoilage or evaporation loss during January.
Production Cost Data Direct Materials Conversion Cost
Beginning Inventory $28,560 $5,230
Current period costs $450,000 $181,200
Work in Process Inventory
Mixing Deparment (40% complete) 5,000 liters
Mixing Department (60% complete)6,000 liters
Unit production data
Units started during January 90,000 liters
Units transferred out during Jan 89,000 liters
Using the FIFO costing method, prepare a process cost report for the Mixing Department for January.
The solution explains how to prepare a process cost report using FIFO method