Lee Stevens makes frozen pizzas. All direct materials are introduced at the start of the process. Conversion costs are incurred evenly throughout the process. In January there was no beginning WIP inventory, but 690,000 units were started, completed and transferred to finished goods inventory. At January 31 there were 165,000 units still in process at the 70 percent stage of completion. Total costs incurred during January amounted to $1,068,750 for materials and $402,750 for conversion costs.
Required: Prepare a production-cost report for January.

Question

Quizplus · Accepted Answer

The Answer of Lee Stevens makes frozen pizzas. All direct materials are introduced at the start of the process. Conversion costs are incurred evenly throughout the process. In January there was no beginning WIP inventory, but 690,000 units were started, completed and transferred to finished goods inventory. At January 31 there were 165,000 units still in process at the 70 percent stage of completion. Total costs incurred during January amounted to $1,068,750 for materials and $402,750 for conversion costs.
Required: Prepare a production-cost report for January.

Lee Stevens Makes Frozen Pizzas