prepare an october 2010 cost of production report for lilliputian inc using fifo pro 642386
(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 product in:
|
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.