The BerryPhoenix BrickWorks, in Saskatoon, Saskatchewan, manufactures high-quality bricks used in residential and commercial construction. The firm is small but highly automated and typically produces about 300,000 bricks per month. A brick is created in a continuous production operation. In the initial step, the raw material, a mixture of soils and water, is forced
into a mould moving along a conveyor belt. No other materials are actually required. Each brick takes about three days to complete. Approximately the last 36 hours on the conveyor belt are spent in an oven that removes moisture from the product. The belt speed is monitored and controlled by computer. The firm uses a process costing system based on actual costs in three cost pools—direct materials, direct labour, and factory overhead—to assign production costs to output. Here are cost and production data for May:
Beginning work-in-process inventory……………………………………..25,000 bricks
100% complete as to direct materials
60% complete as to direct labour
36% complete as to factory overhead
Started this period…………………………………………………………………305,000 bricks
Ending work-in-process inventory………………………………………….30,000 bricks
100% complete as to direct materials
50% complete as to direct labour
40% complete as to factory overhead
Required:
Determine the cost of bricks transferred to finished goods inventory and the cost of bricks in ending work-in-process inventory for May. Assume the company uses the FIFO method of process costing.
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