Cost of production report fifo method


Cost of Production Report Fifo Method. Jersey-Schell, Inc. uses three departments to produce a hair spray. The Finishing Department is the third and last step before the product is transferred to storage vats for bottling or wholesale distribution.

All materials needed to give the hair spray its final composition are added at the beginning of the process in the Finishing Department. Any lost units occur only at this point.

The company uses the fifo method in its cost system. The following data for the Finishing Department for October have been made available:

Production data:

In process, October 1

10,000 gals.

(Labor and factory overhead, 3/4 complete)

Transferred in from preceding department

40,000 gals.

Finished and transferred to storage

35,000 gals.

In process, October 31

10,000 gals.

(Labor and factory overhead, 1/2 complete)

Additional data:

Inventory work in process - October 1

Cost from preceding department

$ 38,000

Cost from this department:





Factory overhead


Total inventory work in process, October 1


Transferred in during October


Cost added in this department:


$ 70,000



Factory overhead


Total cost added


Total cost to be accounted for


Required: A cost of production report for October



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Accounting Basics: Cost of production report fifo method
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