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FIFO Method, Single Department Analysis, One Cost Category
Hatch Company produces a product that passes through three processes: Fabrication, Assembly, and Finishing. All manufacturing costs are added uniformly for all processes. The following information was obtained for the Fabrication Department for June:
Work in process, June 1, had 90,000 units (40 percent completed) and the following costs:
Direct materials $72,720
Direct labor 108,000
Overhead 36,000
During the month of June, 180,000 units were completed and transferred to the Assembly Department, and the following costs were added to production:
Direct materials $216,000
Direct labor 144,000
Overhead 162,000
On June 30, there were 45,000 partially completed units in process. These units were 80 percent complete.
Required:
Prepare a cost of production report for the Fabrication Department for June using the FIFO method of costing.
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FIFO Method, Single Department Analysis, One Cost Category
Hatch Company produces a product that pa...
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