Marvin Ltd

question 102

Essay

Marvin Ltd.uses an automated process in its manufacturing operations.On November 1, the company had 25,000 units in beginning work in process which were 80% complete with respect to conversion.During the month of November, it started 120,000 into production.On November 30, there were 20,000 units in process, which were 40% complete with respect to conversion.Direct materials are added at the beginning of the process, and no units are spoiled in production.The beginning inventory had direct materials costs of $105,750 and conversion costs of $45,500.During the month, the company issues $510,000 of direct materials and incurred $203,400 of conversion costs.Required:
Prepare a production cost worksheet using the FIFO method.

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Definitions:

Vascular Plants

Plants that have specialized structures for the transport of water and nutrients, including xylem and phloem.

Silurian Period

A geologic period and system that extends from about 443.8 million to 419.2 million years ago, noted for significant biological developments including the appearance of the first clearly identifiable land plants.

Air-breathing Animals

Organisms that intake oxygen from the air to the lungs or other special respiratory organs to sustain life.

First Land Animals

Early terrestrial organisms, primarily arthropods and amphibians, that colonized land during the Paleozoic era.