Week2 P3-7 Doover
Company
Doover
Company produces organic honey, which it sells to health food stores and
restaurants. The company owns thousands of beehives. No direct materials other
than honey are used. The production operation is a simple one. Impure honey is
added at the beginning of the process and flows through a series of filters,
leading to a pure finished product. Costs of labor and overhead are incurred
uniformly throughout the filtering process. Production data for April and May
follow.
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April
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May
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Beginning work
in process inventory
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Units(litres)
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7,100
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12,400
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Direct materials
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$2,480
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?*
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Conversion cost
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$5,110
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?*
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Production
during the period:
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Units started(litres)
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288,000
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310,000
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Direct materials
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$100,800
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$117,800
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Conversion costs
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$251,550
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$277,281
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Ending work
in process inventory
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Units(litres)
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12,400
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16,900
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*from
calculations at end of April
The beginning work in process inventory for April was 80 percent complete for conversion costs, and ending work in process inventory was 20 percent complete. The ending work in process inventory for May was 30 percent complete for conversion costs.
Assume no
loss from spoilage or evaporation.
Required
1. Using the FIFO method, prepare a process cost report for April.
1. Using the FIFO method, prepare a process cost report for April.
2. From the
information in the process cost report, identify the amount that should be
transferred out of the Work in Process Inventory account, and state where those
dollars should be transferred.
3. Repeat
requirements 1 and 2 forMay.
TUTORIAL PREVIEW
Process Costing: One Process and Two Time Periods—FIFO Costing Method
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Doover Company
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Process Cost Report—FIFO Costing Method
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For the Month Ended April 30
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Physical Units
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Beginning inventory
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7,100
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Equivalent Units
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Units started this period
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288,000
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Direct Materials
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Conversion Costs
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Units to be accounted for
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295,100
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Beginning inventory
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7,100
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0%
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1,420
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20%
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Units started and completed
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275,600
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275,600
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100%
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275,600
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100%
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File name: Week2 P3-7 Doover Company.xls File type: .xls PRICE: $25
