Problem:
The Welding Department of Majestic Manufacturing Company has the following production and manufacturing cost data for February 2012.
All materials are added at the beginning of the process. Majestic uses the FIFO method to compute equivalent units.
|
Beginning work in process
|
$ 32,175
|
Beginning work in process
|
15,000 units,
|
|
Costs transferred in
|
135,000
|
|
10% complete
|
|
Materials
|
57,000
|
Units transferred out
|
50,000
|
|
Labor
|
35,100
|
Units transferred in
|
64,000
|
|
Overhead
|
68,400
|
Ending work in process
|
25,000,
|
|
|
|
20% complete
|
Instructions
Prepare a production cost report for the Welding Department for the month of February. Transferred-in costs are considered materials costs.