Exercise 8-52 (Static) Prepare a Production Cost Report: FIFO Method (LO 8-2, 4, 5, 6)Beverly Plastics produces a part used in precision machining. The part is produced in two departments: Mixing andRefining. The raw material is introduced into the process in the Mixing Department. The cost of the material fluctuatessignificantly month to month based on market conditions. Information on costs and operations in the RefiningDepartment for September follow:WIP inventory-RefiningBeginning inventory(17,500 units, 10% complete with respect to Refiningcosts)Transferred-in costs (from Mixing)Refining conversion costsCurrent work (55,300 units started)Mixing costsRefining costs$ 237,0559,676$ 898,625103,140The ending inventory has 22,900 units, which are 90 percent complete with respect to Refining Department costs.Required:a. Complete the production cost report using the FIFO method.Note: Round "Cost per equivalent unit" to 2 decimal places.Flow of units:Units to be accounted for.Beginning WIP inventoryUnits started this periodTotal units to account forUnits accounted for:Completed and transferred outFrom beginning WIP inventoryMixingRefiningStarted and completed currentlyUnits in ending WIP inventoryMixingRefiningTotal units accounted forFlow of costs:Costs to be accounted for:Costs in beginning WIP inventoryCurrent period costsTotal costs to be accounted forCost per equivalent unitMixingRefiningCosts accounted for:Costs assigned to units transferred out:Costs from beginning WIP inventoryCurrent costs added to complete beginning WIPinventoryMixingRefiningCurrent costs of units started and completed:MixingRefiningTotal costs transferred outCost of ending WIP inventoryMixingRefiningTotal costs accounted forPhysicalUnitsTotalEquivalent UnitsMixing RefiningDepartment DepartmentMixing RefiningDepartment DepartmentAssessment Tool iFrame

It is the report that gives information about the total units produced and total cost incurred…

Beverly Plastics produces a part used in precision machining. The part is produced in two departments: Mixing and Refining. The raw material is introduced into the process in the Mixing Department. The cost of the material fluctuates significantly month to month based on market conditions. Information on costs and operations in the Refining Department for September follow: WIP inventory-Refining Beginning inventory (17,500 units, 10% complete with respect to Refining costs) Transferred-in costs (from Mixing) Refining conversion costs Current work (55,300 units started) Mixing costs Refining costs $ 237,055 9,676 $ 898,625 103,140 The ending inventory has 22,900 units, which are 90 percent complete with respect to Refining Department costs.

Beverly Plastics produces a part used in precision machining. The part is produced in two departments: Mixing and Refining. The raw material is introduced into the process in the Mixing Department. The cost of the material fluctuates significantly month to month based on market conditions. Information on costs and operations in the Refining Department for September follow: WIP inventory-Refining Beginning inventory (17,500 units, 10% complete with respect to Refining costs) Transferred-in costs (from Mixing) Refining conversion costs Current work (55,300 units started) Mixing costs Refining costs $ 237,055 9,676 $ 898,625 103,140 The ending inventory has 22,900 units, which are 90 percent complete with respect to Refining Department costs.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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