Urban Company Manufactures a Product Through a Continuous Single-Step Process

question 84

Essay

Urban Company manufactures a product through a continuous single-step process.All materials are added at the beginning of processing.Production and cost data for the company for February are as follows:
$\begin{array}{lr}\text { Production data: }\\\text { In process, beginning of month ( } 20 \% \text { converted) } & 1,000 \text { unit } \\\text { Started during February } & 5,000 \text { unit } \\\text { Completed and transferred to finished goods } & 4,500 \text { unit } \\\text { In process, end of month ( } 60 \% \text { converted) } & 1,500 \text { unit }\\\\\text { Manufacturing costs: }\\\text { Work in process, beginning } & \$ 14,730 \\\text { Materials } & \$ 45,000 \\\text { Direct labour cost } & \$ 102,960 \\\text { Factory overhead cost } & \$ 51,480\end{array}$ Prepare a cost of production report for February.Use FIFO process costing.

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Definitions:

Specific Objectives

Well-defined, quantifiable goals set by a business or organization aimed at achieving particular outcomes or benchmarks.

Crisis Management

The identification of a threat to an organization and its stakeholders, and the methods used by the organization to deal with it.

Mattel Company

An American multinational toy manufacturing company known for brands like Barbie, Hot Wheels, and Fisher-Price.

Recall

The process of officially withdrawing a product from the market or correcting defects for a product already sold to consumers, typically because of identified safety issues or quality control problems.