Marvin Ltd

Essay

Marvin Ltd.uses an automated process in its manufacturing operations.On November 1, the company had 25,000 units in beginning work in process which were 80% complete with respect to conversion.During the month of November, it started 120,000 into production.On November 30, there were 20,000 units in process, which were 40% complete with respect to conversion.Direct materials are added at the beginning of the process, and no units are spoiled in production.The beginning inventory had direct materials costs of $105,750 and conversion costs of $45,500.During the month, the company issues $510,000 of direct materials and incurred $203,400 of conversion costs.Required:
Prepare a production cost worksheet using the FIFO method.