New Image Sports Uses a Process-Costing System Direct Materials Are Placed into Production at the Beginning of the Following

question 151

Essay

New Image Sports uses a process-costing system.For March,the company had the following activities:
$$\begin{array} { l r } \text { Beginuning work-in-process inventory (1/3 complete) } & 7,200 \text { units } \\\text { Units placed in prod uction } & 28,800 \text { units } \\\text { Good units completed } & 21,600 \text { units } \\\text { Ending work-in-process inventory } & 12,000 \text { units } \\\text { Cost of be ginning work in process } & \$ 6,000 \\\text { Direct material costs, current } & \$ 21,600 \\\text { Conversion costs, current } & \$ 14,400\end{array}$$ Direct materials are placed into production at the beginning of the process.All spoilage is normal and is detected at the end of the process.Ending WIP is 60% completed as to conversion.
Required:
Prepare a production cost worksheet using the FIFO method.

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Definitions:

Apical Dominance

Effect in which a lengthening shoot tip inhibits the growth of lateral buds.

Auxin

A class of plant hormones involved in various aspects of plant growth and development, including cell elongation.

Hormone

Biological substances synthesized by glands in multicellular organisms, transported by the circulatory system to distant organs to regulate physiology and behavior.

Diploid

Refers to cells that have two sets of chromosomes, one from each parent.