Required: Prepare a cost of production report for the Fabrication Department for June using the FIFO method of costing. Round the cost per equivalent unit to the nearest cent.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Hatch Company
Fabrication Department
Production Report for June
Unit Information
Units to account for:
Total units to account for
Units accounted for:
Total units accounted for
Costs to account for:
Cost Information
Total costs to account for
Costs to account for:
Cost Information
Total costs to account for
Physical
Flow
Cost per equivalent unit
Costs accounted for:
Units transferred out:
Units, beginning work in process:
Prior-period costs
Current costs to finish units
Units started and completed
Total cost transferred out
Units, ending work in process
Total costs accounted for
$
$
$
Equivalent
Units
Manufacturing
Costs
$
Manufacturing
Costs](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3777cddf-4970-404f-9b97-0205ff6953f8%2F06900a2c-2d7e-46ec-9911-2eed6b058991%2Fapky1bo_processed.jpeg&w=3840&q=75)
![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:
a. Work in process, June 1, had 90,000 units (40 percent completed) and the following costs:
Direct materials
$72,720
107,000
Overhead
36,000
b. During the month of June, 190,000 units were completed and transferred to the Assembly Department, and the following costs were added
to production:
Direct materials
Direct labor
$223,000
144,000
165,000
Overhead
c. On June 30, there were 45,000 partially completed units in process. These units were 80 percent complete.
Required:
Direct labor
Prepare a cost of production report for the Fabrication Department for June using the FIFO method of costing. Round the cost per equivalent
unit to the nearest cent.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3777cddf-4970-404f-9b97-0205ff6953f8%2F06900a2c-2d7e-46ec-9911-2eed6b058991%2Fw9k95pb_processed.png&w=3840&q=75)
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