Solution-Prepare a production cost report for the forming

Prepare a production cost report for the forming department

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Reference no: EM132516918

A Toy manufacturer buys wood as its direct material for its Forming Department. The department processes one type of toy. The toys are transferred to the Finishing Department, where hand shaping and metal are added.

Consider the following data:

Units:

Work in process, March 31, 3000 units, 100% completed for direct materials but only 40% completed for conversion costs.

Units started in April, 22,000 units.

Units completed during April, 20,000 units.

Work in process, April 30, 5,000 units, 100% completed for direct materials but only 25% completed for conversion costs.

Costs:

Work in process, March 31:

Direct materials $7,500

Conversion costs $2,125 $9,625

Direct materials added during April $70,000

Conversion costs added during April $42,500

Total costs to account for $122,125

REQUIRED:

Question 1. Prepare a schedule of output in equivalent units for the Forming Department for April using the FIFO method.

Question 2. Prepare a production cost report for the Forming Department for April using the FIFO method. Use four decimal places for costs per EU.

Reference no: EM132516918

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Prepare a production cost report for the forming department

Reference no: EM132516918

Reference no: EM132516918

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