Surf Products Company Uses an Automated Process to Clean and Polish

question 96

Essay

Surf Products Company uses an automated process to clean and polish its souvenir items.For March,the company had the following activities:
$$\begin{array} { | l | r | } \hline \text { Beginning work-in-process inventory } & 3 0 0 0 \text { items, 1/3 complete } \\\hline \text { Units placed in production } & 12000 \text { units } \\\hline \text { Units completed } & \text { 9000 units } \\\hline \text { Ending work-in-process inventory } & 6000 \text { items, 1/2 complete } \\\hline & \\\hline \text { Cost of beginning work in process } & \$ 2500 \\\hline \text { Direct material costs, current } & \$ 9000 \\\hline \text { Conversion costs, curent } &\$ 7 7 0 0 \\\hline\end{array}$$
Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process.
Required:
Prepare a production cost worksheet using the FIFO method.
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Definitions:

Local Geology

The study of Earth's physical structure and substance, including rocks and soil, in a specific area or region.

Grained Sedimentary

Refers to sedimentary rocks characterized by the size of their grains, which indicates the conditions of their formation.

Deposits

Sediments, minerals, or other substances that have been accumulated or left behind, typically by water, wind, or ice.

Lake

A large body of water surrounded by land, not directly connected to the sea.