The Inventory at July 1st and the cost charged to work in process department B during July for the Parker Corporation are as follows:
32,000 units, 3/4 completed...................................1,312,000
From Department A 174,000 units.........................1,566,000
Direct Labor............................................................5,848,000
Factory Overhead...................................................1,292,000
During July, all direct materials are transferred from Department A, the units in process at July 1st were completed, and of the 174,000 units entering the Department, all were completed except 36,000 units which were 2/3 completed. Inventories are costed by the FIFO method.
Use the 5 Steps to prepare a cost of production report:
1. Units to be accounted for: Beginning WIP + Transferred In = Total
2. Units to be accounted for: Beginning WIP + Started and Completed + Ending WIP = Total
3. Equivalent Units of Production & Cost per EUP
4. Cost to be accounted for: Beg. WIP + Materials + Direct Labor + Overhead = Total Cost to be accounted for
5. Cost accounted for: Total cost of beginning WIP + Total cost for started and completed + Total Cost for ending WIP = Total cost accounted for
