Question:
FIFO cost method; cost of production summary
Boise Beverages, Inc., uses the FIFO cost method and adds all materials, labor, and factory overhead evenly to production. A record of the factory operations for the month of October follows:
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Production Summary
|
Units
|
|
Work in process, beginning of month, one-fourth completed
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5,000
|
|
Started in process
|
13,000
|
|
Finished and transferred to stockroom
|
11,000
|
|
Work in process, end of month, three-fourths completed
|
7,000
|
|
Cost Summary
|
|
|
Work in process, beginning of month
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$10,000
|
|
Materials
|
45,000
|
|
Labor
|
30,000
|
|
Factory overhead
|
15,000
|
Required:
Prepare a cost of production summary for the month.