Problem: The Welding Department of Hirohama Manufacturing Company has the following production and manufacturing cost data for February 2005. All materials are added at the beginning of the process. Hirohama uses the FIFO method to calculate equivalent units.
Manufacturing Costs
Beginning work in process $32,175
Costs transferred in 135,000
Materials 57,000
Labour 35,100
Overhead 71,900
Production Data
Beginning work in process 15,000 units
10% complete
Units transferred out 50,000
Units transferred in 60,000
Ending work in process 25,000 units
20% complete
Complete the production cost report for the Welding Department for the month of February. Transferred in costs are considered materials costs.