Reference no: EM132540034
Process Costing: Cost of Production Report under WA & FIFO Methods
At the beginning of September 20x3, Nation Lovers PLC had 1250 units partially assembled units in the Machining Department. During September 20x3, Nation Lovers PLC placed another 4000 units into production. Data for the Machining Department for Sept, 20x3 are:
Physical units for September, 20x3
Work in process, beginning inventory (Sep 1).................... 1250 units
Direct Materials (100% complete)
Conversion costs (80% Complete)
Started during September ........................................... 4000 units
Completed and transferred out during September............... 4250 units
Work in process, ending inventory (Sep 30)...................... 1000units
Direct Materials (100% complete)
Conversion cost (60% complete)
Total Costs for Sep 20x3
Work in Process, beginning inventory
Direct Materials (1250 equivalent unit x $25 per unit ........... 31250
Conversion cost (1000, equivalent units x $15 per unit)........ 15000
46250
Direct materials costs added during September 100000
Conversion costs added during September. 72300
Total costs to account for 218550
Required:
Question 1: Prepare the Cost of Production Report and journalize the necessary entries under WA Method & FIFO Method