(Appendix 6A) FIFO; Production Report Aztec Inc. produces soft drinks. Mixing is
ID: 2548841 • Letter: #
Question
(Appendix 6A) FIFO; Production Report
Aztec Inc. produces soft drinks. Mixing is the first department, and its output is measured in gallons. Aztec uses the FIFO method. All manufacturing costs are added uniformly. For July, the mixing department provided the following information:
Required:
Prepare a production report.
Production: Units in process, July 1, 60% complete 18,000 gallons Units completed and transferred out 141,000 gallons Units in process, July 31, 45% complete 16,000 gallons Costs: Work in process, July 1 $36,000 Costs added during July 398,460Explanation / Answer
Aztec Inc. Mixing Department
Aztec Inc. Mixing Department
Production Report For the Month of July (FIFO Method) Unit Information Physical flow: Units to account for: Units Units in beginning WIP 18000 Units started 139000 Total units to account for 157000 Units to account for: Units Units started and completed 123000 From beginning WIP 18000 Units in ending WIP 16000 Total units to account for 157000 Equivalent units: Units Started and completed 123000 To complete beginning WIP 7200 Units in ending WIP 7200 Total equivalent units 137400 Cost Information Costs to account for: Dollars Costs in beginning WIP $36,000.00 Costs added by department $398,460.00 Total costs to account for $434,460.00 Cost per equivalent unit $2.90 Costs accounted for: Total Transferred out: Units started and completed 123,000 Units in beginning work in process: 18,000 From prior period $36,000.00 From current period $377,580.00 Total cost transferred out $413,580.00 Goods in ending work in process $20,880.00 Total costs accounted for $434,460.00Related Questions
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