Reference no: EM132520914

BAKERS makes cakes for the bakery industry. It uses a process costing system to cost its products. The company makes the foam in three departments; Forming, Trimming, and Packaging. In the Forming department the direct materials along with conversion costs are added evenly throughout the process.

• The cost accountant is completing the production report for the month of April. At the beginning of the month there were 3,500 foam that had 60% of the work completed in March. 19,000 foam were started in the month of April and 2,500 remain in ending inventory at the end of April. This ending inventory is 20% complete. The rest were completed and transferred to the Trimming Department.

• The cost accountant must determine how much of the following costs should be transferred to the Trimming Department and how much remains in ending inventory.

Cost of beginning work-in-process:

Direct materials $ 4,830

Conversion costs $ 2,625

Cost added during April:

Direct material $42,320

Conversion costs $23,000

Problem 1: Using the first-in, first-out (FIFO) method determine the assignment of the cost of plant pots transferred-out to Trimming and ending inventory for the Forming department for the month of April.