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Tomar Company produces vitamin energy drinks. The Mixing Department, the first process department, mixes the ingredients required for the drinks. The following data are for April: Direct materials are added throughout the process. Ending inventory is 60 percent complete with respect to direct labor and overhead. Required: 1. Why would a manager want a production report? 2. Prepare a production report for the Mixing Department for April.
Cornerstones of Cost Management (C...
Solutions
Cornerstones of Cost Management (C...
Tomar Company produces vitamin energy drinks. The Mixing Department, the first process department, mixes the ingredients required for the drinks. The following data are for April:
Direct materials are added throughout the process. Ending inventory is 60 percent complete with respect to direct labor and overhead.
Required:
- 1. Why would a manager want a production report?
- 2. Prepare a production report for the Mixing Department for April.
1.
Discuss the reason for which manager want production report.
Explanation of Solution
Production Cost Report: A report which gives information about the total units produced and total cost incurred during the production process is called production cost report. This report is useful for the management of the company to take decision regarding production and the measure for cost control...
2.
Prepare a production report for the mixing department for the month of April.
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