Smithers Ltd

Question 125

Smithers Ltd.uses the FIFO method for its production costing.On June 1, it had 35,000 units in beginning work in process that were 60% complete with respect to conversion costs.During the month it completed 80,000 units and on June 30, there were 16,000 units in ending work in process.These units were 35% complete with respect to conversion.Direct materials are added at the beginning of the process and no units are lost during production.The costs associated with the beginning inventory were $83,300 for direct materials and $66,780 for conversion.During the month, Smithers issued $146,400 of direct materials and incurred $206,720 of conversion costs.Required: Prepare a production cost worksheet using the FIFO method.