Prepare a Production Cost Report: FIFO Method
Assume that El Paso Corporation provides you with the following information for one of its department’s operations for September (no new material is added in Department B):
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WIP inventory—Department B |
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Beginning inventory (7,500 units, 20% complete with respect |
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to Department B costs) |
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Transferred in costs (from Department A) |
$ 29,000 |
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Department B conversion costs |
7,675 |
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Current work (17,500 units started) |
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Prior department costs |
70,000 |
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Department B costs |
149,075 |
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The ending inventory has 2,500 units, which are 50 percent complete with respect to Department B costs and 100 percent complete for prior department costs. |
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Required
Prepare a production cost report using FIFO.