The Assembling Department of Miller, Inc had 10,000 units in process on December 1 and received 30,000 units from the Sewing Department

Question

During the month, it completed 20,000 units and transferred them to the Packaging Department. Calculate the number of units accounted for by the Assembling Department for December. Prepare the production cost report for the Assembling Department for the whole units for the month of December. Use the FIFO method.
What will be an ideal response

Answer 1

Miller, Inc.
Production Cost Report—Assembling Department—
FIFO Method—Whole Units
Month Ended December 31
Whole Units
Units to account for:
Beginning WIP 10,000
Started in production 30,000
Total units to account for 40,000
Units accounted for:
Beginning WIP 10,000
Started and completed 10,000
Transferred to Packaging Department 20,000
Ending WIP 20,000
Total units accounted for 40,000

Notes:
Ending Work-in-Process Inventory = Beginning Work-in-Process Inventory + Amount transferred in - Amount transferred out
Ending Work-in-Process Inventory = 10,000 + 30,000 - 20,000 = 20,000 units

Accounted for = Beginning balance + Started and completed + In process
Accounted for = 10,000 units + 10,000 + 20,000 = 40,000 units

Started and completed = Completed and transferred - Beginning balance
Started and completed = 20,000 - 10,000 = 10,000 units