Thunderbird company uses a process accounting system to account for the manufacturing cost of a thirst quenching drink for athletes. The drink called, “Zest”, starts in the cooking department and is then transferred to the finishing department where it’s completed.
Thunderbird began January, 20×6, with 20,000 gallons of Zest in process in the cooking department. These were 90% complete as the materials and 40% complete as to labor and overhead. During January the cooking department started an additional 200,000 gallons and transferred 190,000 gallons to the finishing department. Work in process on January 31 was 80% complete as to materials and 20% complete as to labor and over head. Cost data for the cooking department are as follows:
Work in process, January 1. $4,680
Prepare a cost of production report for the cooking department for January, 20×6, using FIFO method
PROCESS COSTING WORK SHEET FIFO METHOD % of Completion Beginning Inventory Ending Inventory UNITS TO BE ACCOUNTED FOR Materials Conversion Units Beginning Inventory Units Started UNITS TO BE ACCOUNTED FOR Equivalent Units Materials Conversion UNITS ACCOUNTED FOR: Units Beginning Inventory Completed Units Started & Completed Ending Inventory UNITS ACCOUNTED FOR Total COSTS TO BE ACCOUNTED FOR Beg. Inv. Materials Conversion Beginning Inventory Costs Added in Current Period COSTS TO BE ACCOUNTED FOR EQUIVALENT UNITS UNIT COST COSTS ACCOUNTED FOR Units Completed From Beginning Inventory To Complete Beginning Inventory Started & Completed Total Ending Inventory COSTS ACCOUNTED FOR: (Proc. Cost. Work Sheet Fifo)