Matthews Manufacturing Corporation produces a sports injury ointment in three consecutive processes. The costs of Department 1 for March 20X5 were as follows:
Department 1 handled the following units during March:
Units in process, March 1 2,000
Units started in Department 1 40,000
Units transferred to Department 2 39,000
Units in process, March 31 3,000
On average, the March 1 units were 30% complete. The March 31 units were 60% complete. Materials are added at the beginning of the process, and conversion costs occur evenly throughout the process in Department 1. Matthews uses the FIFO method for process costing.
Prepare the product cost report for Department 1 for March.

Question

Matthews Manufacturing Corporation produces a sports injury ointment in three consecutive processes. The costs of Department 1 for March 20X5 were as follows:
  Department 1 handled the following units during March:
Units in process, March 1 2,000
Units started in Department 1 40,000
Units transferred to Department 2 39,000
Units in process, March 31 3,000
On average, the March 1 units were 30% complete. The March 31 units were 60% complete. Materials are added at the beginning of the process, and conversion costs occur evenly throughout the process in Department 1. Matthews uses the FIFO method for process costing.
Prepare the product cost report for Department 1 for March.

Quizplus · Accepted Answer

The Answer of Matthews Manufacturing Corporation produces a sports injury ointment in three consecutive processes. The costs of Department 1 for March 20X5 were as follows:
  Department 1 handled the following units during March:
Units in process, March 1 2,000
Units started in Department 1 40,000
Units transferred to Department 2 39,000
Units in process, March 31 3,000
On average, the March 1 units were 30% complete. The March 31 units were 60% complete. Materials are added at the beginning of the process, and conversion costs occur evenly throughout the process in Department 1. Matthews uses the FIFO method for process costing.
Prepare the product cost report for Department 1 for March.

Matthews Manufacturing Corporation Produces a Sports Injury Ointment in Three