Bubbly Inc. produces and sells candies. Bubbly purchases raw materials, stores them in warehouse, and then runs them through two processes: production and packaging. During September, the production process incurred the following costs in processing 20,000 candies:
$$\begin{array} { | l | r | }
\hline \text { Wages of workers operating production equipment } & \$ 56,500 \
\hline \text { Manufacturing overhead allocated to the production department } & 8,500 \
\hline \text { Direct materials } & 135,000 \
\hline
\end{array}$$ Use the FIFO method to compute the September conversion costs in the Production Department.

Question

Bubbly Inc. produces and sells candies. Bubbly purchases raw materials, stores them in warehouse, and then runs them through two processes: production and packaging. During September, the production process incurred the following costs in processing 20,000 candies:
$$\begin{array} { | l | r | } 
\hline \text { Wages of workers operating production equipment } & \$ 56,500 \
\hline \text { Manufacturing overhead allocated to the production department } & 8,500 \
\hline \text { Direct materials } & 135,000 \
\hline
\end{array}$$ Use the FIFO method to compute the September conversion costs in the Production Department.

Quizplus · Accepted Answer

The Answer of Bubbly Inc. produces and sells candies. Bubbly purchases raw materials, stores them in warehouse, and then runs them through two processes: production and packaging. During September, the production process incurred the following costs in processing 20,000 candies:
$$\begin{array} { | l | r | } 
\hline \text { Wages of workers operating production equipment } & \$ 56,500 \
\hline \text { Manufacturing overhead allocated to the production department } & 8,500 \
\hline \text { Direct materials } & 135,000 \
\hline
\end{array}$$ Use the FIFO method to compute the September conversion costs in the Production Department.

Bubbly Inc Use the FIFO Method to Compute the September Conversion Costs