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Bangor Products produces electronics language translators. Analysis of starting Work in Process Inventory for July 2008 revealed the following:

800 Units Percent Complete Cost Incurred
Direct Material 45% 6,748
Direct Labor 65% 8,680
Overhead 40% 5,710
Total Beginning Inventory 21,138

Direct Labor costs were very high during June as the company had labor strike and paid high premium for production that month.

In July, Bangor Products started production of another 11,400 translators and incurred $259,012 for material, $58,200 for direct labor, and $188,210 for overhead. At the end of July, company had 400 units in process (70% complete as to material, 90% complete as to direct labor, and 80% complete as to overhead).

A.) Create cost of production report for July by using FIFO method of process costing.

Project Management, Management Studies

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  • Reference No.:- M932948

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