Process Costing: FIFO Costing Method
Canned fruits and vegetables are the main products made by Yummy Foods, Inc. All direct materials are added at the beginning of the Mixing Department's process. When the ingredients have been mixed, they go to the Cooking Department. There the mixture is heated to 100° Celsius and simmered for 20 minutes. When cooled, the Anixture goes to the Canning Department for final processing. Throughout the opera-tions, direct labor and overhead costs are incurred uniformly. No direct materials are added in the Cooking Department. Cost data and other information for the Mixing Department for January are as follows.
Assume that no spoilage or evaporation loss took place during January.
REQUIRED
1. Using the FIFO costing method, prepare a process cost report for the Mixing Department for January.
2. ACCOUNTING CONNECTION Explain how the analysis for the Cooking Depart-ment will differ from the analysis for the Mixing Department.