Bhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in themanufacturing. The molding department fills the molds with hot liquid plastic that is left to cool and then opensthem. The finishing department removes the plastic frame from the mold and strips the edges of the frames of extraplastic.The following information is available for the month of January:January 1Quantity(pounds)January 31Quantity(pounds)Work-in-Process InventoryCostCostMolding departmentFinishing departmentNoneNone5,000$ 15,0002,000The WIP Inventory in the finishing department is estimated to be 40% complete for conversion both at thebeginning and end of January. Costs of production for January follow:DirectCosts of ProductionMaterialsConversionMolding departmentFinishing department$ 450,000$ 90,00080,290The molding department started 50,000 pounds of product in January. The firm uses the FIFO method of processcosting.Required:1. Prepare a production cost report for the molding department.2. Prepare a production cost report for the finishing department.

Process costing: It is a type of costing method, where the direct costs are accumulated and indirect…

Answered: Required: 1. Prepare a production cost…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter12: Queueing Models

Section: Chapter Questions

Problem 59P

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Required: 1. Prepare a production cost report for the molding department. 2. Prepare a production cost report for the finishing department.