Cost of production report using FIFO(equivalent production)
Bangor Products manufactures electronics language translators. Analysis of beginning Work in Process Inventory for July 2008 revealed the following:
800 Units Percent Complete Cost Incurred
Direct Material 45% 6,748
Direct Labor 65% 8,680
Overhead 40% 5,710
Total Beginning Inventory 21,138
Direct Labor costs were extremely high during June because the company had a labor strike and paid a high premium for production that month.
During July, Bangor Products started production of another 11,400 translators and incurred $259,012 for material, $58,200 for direct labor, and $188,210 for overhead. At the end of July, the company had 400 units in process (70% complete as to material, 90% complete as to direct labor, and 80% complete as to overhead).
A.) Prepare a cost of production report for July using the FIFO method of the process costing