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Introduction: There Are Two Methods Of Preparing Cost

Submitted by • October 19, 2018

Introduction: There are two methods of preparing cost of production reports, the weighted-average costing method and the FIFO method. In this assignment, you will work within groups to prepare a cost of production report using both of the methods. In addition, you will identify the appropriate method and reasons for choosing that method for a specific type of business.Cost Production Report The following data for the Packaging Department for March are available: Units: Packaging Department Beginning WIP-Units 10,000 Started in production 80,000 Transferred out 75,000 Ending WIP Units- 15,000 Beginning WIP- % complete 40%Ending WIP- % complete 80%Costs: Beginning WIP- transferred in costs $3,000 Beginning WIP- materials costs -Beginning WIP-Conversion costs $1,630 Transferred-in costs $9,600 Direct materials- Packaging $21,000 Conversion costs: Direct labor $ 8,470 Manufacturing overhead $ 7,300 Total conversion costs $15,770 Ben Hiebert, president of Hiebert Chocolate, Ltd, is trying t

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