Bangor Products manufactures electronics language translators. Analysis of beginning Work in Process Inventory for July 2008 revealed the following:
800 Units Percent Complete Cost Incurred
Direct Material 45% 6,748
Direct Labor 65% 8,680
Overhead 40% 5,710
Total Beginning Inventory 21,138
Direct Labor costs were extremely high during June because the company had a labor strike and paid a high premium for production that month.
During July, Bangor Products started production of another 11,400 translators and incurred $259,012 for material, $58,200 for direct labor, and $188,210 for overhead. At the end of July, the company had 400 units in process (70% complete as to material, 90% complete as to direct labor, and 80% complete as to overhead).
A.) Prepare a cost of production report for July using the FIFO method of the process costing
The solution contains the cost of production report using FIFO by computing the equivalent production in case of work -in -process units.