lightning industries, located in northern New England, specializes in making Flash, a low alkaline wax that is used to protect and preserve skis. the company began producing at the beginning of the production process. during january, 15300 pounds were used at a cost of 46665. direct labor of $17136 and overhead costs of $25704 were incurred uniformly throughout the month.
By january 31, 13600 pounds of flash had been completed and transferred to the finished goods inventory(one pound of input equals one pound of output) Because no spoilage occured, the leftover materials remained in the production and were 40 percent complete on average.
1. Using the FIFO costing method, prepare a process cost report for the month of january.
2. From the information in the process cost report, identify the amount that should be transferred out of the work in process inventory account, and state where those dollars should be transferred.
3 answers