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Lightning Industries specializes in making Flash, a high-moisture, low alkaline wax used to protect and preserve skis. The company began producing a new, improved brand of Flash on January 1. Materials are introduced at the beginning of the production process.During January, 15,300 pounds were used at a cost of $46,665. Direct labor of $17,136 and overhead cost of $25,704 were incurred uniformly throughout the month. By January 31, 13600 pounds of Flash had been completed and transferred to the finished goods inventory (1 Pound of input equals 1 pound of output).
Since no spoilage occurred, the left over materials remained in production and were 40 percent complete on average.
(1) Using the FiFO costing method,prepare a process cost report for january.
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