Process Costing: FIFO Costing Method
P5. Clalined Fruits aI1d tregetalzrles are the main products made by ‘1’nmn1}r lioods, Inc.
All direct materials are added at the beginning of the Mixing Departn1ent”s process.
Wlten the ingredients have been niixed, die}; go to the {looking Department. There
the mixture is heated to Hill” Celsius and simmered for El] minutes. Wlien cooled, the
l”‘fi’I’IlEl.’i.‘i1’E goes to the [Ianning Depa.rtment for final processing. Tltronghout the opera-
tions, direct labor and overltead costs are incurred uniformly. No direct materials are
added iii the (loolting Department. Cost data and other information For the Mixing
Department for Janua.rj.r are as follows.
Direct Conversion
Prod uotlon Cost Data Materials Costs
Mixing Department
Beginning inventory 5 28,5E:’:iII 5 5,231]
Current period costs 45fl,.i}ilIEi 131,200
work in process inirentorjrz
Beginning inventory idiiiili-is complete in prior period} 5,[iCIEi liters
Ending inventory [sass complete] fi,[ii]IEi liters
Unit production data:
Units started during January 9i],[i[iii liters
Units transferred out during January 39,[i[iii liters
Assunie that no spoilage or evaporation loss took place during ]’..1I1i_i:.1i”j.’.
REQUIRED
1. Using the lillif} costing method, prepare a process cost report for the Misting
Department for January.
2. ACCOUNTING COiilliFECTlOiil Er Explain how die anal1_.rsis for die (“looking Depart-
ment will differ from the analysis for the Ii.-listing Department.
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