(Appendix 6A) First-In, First-Out Method; Single-Department Analysis; One Cost C
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(Appendix 6A) First-In, First-Out Method; Single-Department Analysis; One Cost Category Millie Company produces a product that passes through an assembly process and a finishing process. All manufacturing costs are added uniformly for both processes. The following information was obtained for the assembly department for June: a. wip, June 1, had 24,000 units (60% completed) and the following costs: Direct materials Direct labor overhead applied b. During June, 70,000 units were completed and transferred to the finishing department, and the following costs were added to $186,256 64,864 34,400 Direct materials Direct labor Overhead applied C. On June 30, there were 10,000 partially completed units in process. These units were 70% complete. Required: $267,880 253,000 117,600 Prepare a production report for the assembly department for June using the FiFo methed of costing. The report should disclose the physical flow of units. rounded value in the following computations. It required, round final ansivers (except for per-unit amount) to the nearest doilar or unit. Note: Total equivalent units, and unit costs and should track the disposition of manufacturing costs. Carry the unit cost.computation to four decimal places and use account for and Total costs to account for' would be different due to rounding. Millie Company Previous Next 235 PMExplanation / Answer
Production Report UNITS Units to account for: Units in Beginning WIP 24000 Units Started 56000 Total units to be accounts for 80000 Units account for: Started and completed 46000 From beginning WIP 24000 From Ending Wip 10000 Total units accounted for 80000 Equivalents units Started and completed 46000 To complete beginning WIP(24000*40%) 9600 Units in Ending Inventory (10000*70%) 7000 Total Equivalent units 62600 COST INFORMATION $ Cost to account for: Costs in Beginning Inventory 285520 Costs added to department 638480 Total cost to account for 924000 Cost per Equivalent unit 10.199 (638480/62600) Cost acounted for: Units started and completed(46000 units@10.199) 469177 Units In beginning WIP From prior period 285520 From current period(9600 units@10.199) 97910 Total cost of transferred out 852607 Goods in Ending WIP (7000 units @10.199) 71393 Total cost accounted for 924000
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