LO3 & LO.8 (Appendix 2; FIFO; normal loss) Lilliputian Inc. produces dog food. All direct material is entered at the beginning of the process. Some shrinkage occurs during the production process, but management considers any shrinkage of less than 8 percent to be normal. October 2010 data are as follows:
Beginning WIP Inventory (45% complete as to conversion) 36,000 pounds
Started during the month 120,000 pounds
Transferred to FG Inventory 126,000 pounds
Ending WIP Inventory (15% complete as to conversion) 21,600 pounds
Loss ? pounds
The following costs are associated with October productin:
Beginning WIP Inventory;
Material $14,000
Conversion 10,800 $24,800
Current period;
Material $39,060
Conversion 33,912 72,972
Total cost to account for $97,772
Prepare an October 2010 cost of production report for Lilliputian Inc. using FIFO process costing.