UniCom Manufacturing Company Uses FIFO Process Costing

question 70

Essay

UniCom Manufacturing Company uses FIFO process costing. At the beginning of August, there were 500 units in beginning work-in-process that were 40% complete. In Process 1 all direct materials are added at the beginning of the process. The costs for the 500 units include $1,500 for direct materials and $2,000 for direct labor and conversion costs. During August, an additional 2,000 units entered Process 1. Costs incurred during August include $6,200 for direct materials and $19,200 for conversion costs. There were 200 units only 70% complete by the end of the month.
Prepare a production cost report for the month of August.

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Definitions:

Working Memory

The capacity of the brain to hold and manipulate information in the short term for cognitive tasks such as learning, reasoning, and comprehension.

Short-Term Memory

A part of the memory system where small amounts of information can be kept for a short period of time, typically from a few seconds to a minute.

Functional Fixedness

A cognitive bias that limits a person's ability to use an object only in the way it is traditionally used, hindering problem-solving.

Confirmation Bias

A bias towards finding, comprehending, selecting, and reminiscing information that affirms one's prior beliefs or conjectures.