(Appendix 6A) FIFO; Production Report Aztec Inc. produces soft drinks. Mixing is
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Question
(Appendix 6A) FIFO; Production Report
Aztec Inc. produces soft drinks. Mixing is the first department, and its output is measured in gallons. Aztec uses the FIFO method. All manufacturing costs are added uniformly. For July, the mixing department provided the following information:
Required:
Prepare a production report.
Production: Units in process, July 1, 60% complete 22,000 gallons Units completed and transferred out 138,000 gallons Units in process, July 31, 55% complete 16,000 gallons Costs: Work in process, July 1 $44,000 Costs added during July 307,280Explanation / Answer
Answers
STEP 1
Reconciliation of Units
Units
% already completed
% completed this period
Cost
Cost
Beginning WIP
22,000.00
60%
40%
Units introduced
132,000.00
Total units to be accounted for
154,000.00
Completed and Transferred unit
138,000.00
0%
100%
Ending WIP
16,000.00
0%
55%
STEP 2
Equivalent Units
Total Units
Cost
Units Transferred:
% completed this period
Equivalent Units
From WIP
22,000.00
40%
8,800
From units started
116,000.00
100%
116,000
Total
138,000.00
124,800
Total Units
Cost
Ending WIP
% completed this period
Equivalent Units
Total
16,000.00
55%
8,800
Total EUP
154,000.00
133,600
STEP 3
Cost per Equivalent Units AND Cost to be accounted for
Cost
TOTAL
Cost incurred in Current Period
$ 307,280.00
$ 307,280.00
Total Equivalent Units
133,600
Cost per Equivalent Units
$ 2.30
Cost of Beginning WIP
$ 20,000.00
$ 20,000.00
Total cost to be accounted for
$ 327,280.00
STEP 4
Cost report [Including Reconciliation]
Cost of
Units Transferred
138,000
units
Equivalent Units [Step 2]
Cost per Equivalent Units [Step 3]
Cost of Units Transferred
TOTAL
A
Materials
124,800
$ 2.30
$ 287,040.00
B
C=A+B
Total
$ 287,040.00
D
Cost of Beginning WIP
$ 44,000.00
E=C+D
Total Cost of Units transferred
$ 331,040.00
Cost of
Ending WIP
16,000
units
Equivalent Units [Step 2]
Cost per Equivalent Units [Step 3]
Cost of Ending WIP
TOTAL
F
Materials
8,800
$ 2.30
$ 20,240.00
G
H = F + G
Total Cost of Ending WIP
$ 20,240.00
I = E + H
Total Cost accounted for
$ 351,280.00
J
Rounding Off Differences
0
K = I + J
Total cost to be accounted for [equals to computed in STEP 3]
$ 351,280.00
Aztec Inc. Mixing Department
Production Report
For the Month of July (FIFO Method)
Unit Information
Physical flow:
Units to account for:
Units
Units in beginning WIP
22,000
Units started
132,000
Total units to account for
154,000
Units to account for:
Units
Units started and completed
116,000
From beginning WIP
22,000
Units in ending WIP
16,000
Total units to account for
154,000
Equivalent units:
Units
Started and completed
116,000
To complete beginning WIP
8,800
Units in ending WIP
8,800
Total equivalent units
133,600
Cost Information
Costs to account for:
Dollars
Costs in beginning WIP
$ 20,000.00
Costs added by department
$ 307,280.00
Total costs to account for
$ 327,280.00
Cost per equivalent unit
$ 2.30
Costs accounted for:
Total
Transferred out:
Units started and completed
$ 266,800.00
Units in beginning work in process:
From prior period
$ 20,000.00
From current period
$ 20,240.00
Total cost transferred out
$ 307,040.00
Goods in ending work in process
$ 20,240.00
Total costs accounted for
$ 327,280.00
STEP 1
Reconciliation of Units
Units
% already completed
% completed this period
Cost
Cost
Beginning WIP
22,000.00
60%
40%
Units introduced
132,000.00
Total units to be accounted for
154,000.00
Completed and Transferred unit
138,000.00
0%
100%
Ending WIP
16,000.00
0%
55%
STEP 2
Equivalent Units
Total Units
Cost
Units Transferred:
% completed this period
Equivalent Units
From WIP
22,000.00
40%
8,800
From units started
116,000.00
100%
116,000
Total
138,000.00
124,800
Total Units
Cost
Ending WIP
% completed this period
Equivalent Units
Total
16,000.00
55%
8,800
Total EUP
154,000.00
133,600
STEP 3
Cost per Equivalent Units AND Cost to be accounted for
Cost
TOTAL
Cost incurred in Current Period
$ 307,280.00
$ 307,280.00
Total Equivalent Units
133,600
Cost per Equivalent Units
$ 2.30
Cost of Beginning WIP
$ 20,000.00
$ 20,000.00
Total cost to be accounted for
$ 327,280.00
STEP 4
Cost report [Including Reconciliation]
Cost of
Units Transferred
138,000
units
Equivalent Units [Step 2]
Cost per Equivalent Units [Step 3]
Cost of Units Transferred
TOTAL
A
Materials
124,800
$ 2.30
$ 287,040.00
B
C=A+B
Total
$ 287,040.00
D
Cost of Beginning WIP
$ 44,000.00
E=C+D
Total Cost of Units transferred
$ 331,040.00
Cost of
Ending WIP
16,000
units
Equivalent Units [Step 2]
Cost per Equivalent Units [Step 3]
Cost of Ending WIP
TOTAL
F
Materials
8,800
$ 2.30
$ 20,240.00
G
H = F + G
Total Cost of Ending WIP
$ 20,240.00
I = E + H
Total Cost accounted for
$ 351,280.00
J
Rounding Off Differences
0
K = I + J
Total cost to be accounted for [equals to computed in STEP 3]
$ 351,280.00
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