Sizzling Sodas Prepares Specialty-Flavored Sodas for Large Grocery Chains and Bakeries

Sizzling Sodas prepares specialty-flavored sodas for large grocery chains and bakeries. The company employs a process-costing system. Most of the basic ingredients, labeled Material Group A, are added at the beginning of the mixing process. However, to give the sodas the special "sizzle"
they are named for, the company adds a special ingredient when units are 80% complete, labeled, Material Group B. Information regarding the mixing department in a recent month reveals the following:
Beginning inventory: 1,000 Cases (60% complete for conversion)
Cases started: 9,000
Cases finished: 8,000
The ending inventory is 90% complete as to conversion costs
Cost information:
Beginning Work in Process: $21,600 consisting of $5,200 of Material Group A, $0 of Material Group B and $16,400 of Conversion Costs
Added during the month: $48,000 of Material Group A, $4,500 of Material Group B and $162,000 of
Conversion Costs
Required: (Appendix A)
a) Prepare a cost report using the FIFO method. Round all numbers to four decimal points.
b) Based on your report, prepare an analysis of the cost trend for this company.