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CHECK FIGURES: Conversion: $1.27 per EU 8/31/2021 EB WIP $128,097

Supreme Manufacturing was founded over 35 years ago in East Brunswick, NJ. Supreme's Muy Refresc de Tropical line of Horchata, Tamarindo, and Jamaica drinks are lovingly re-created from Latino recipes handed down through the generations.The Muy Refresc de Tropical line uses only natural cinnamon, vanilla, rice, tamarind root, and hibiscus flower, and is sweetened only with all-natural cane sugar. A long-time cultural favorite, the popularity of Horchata, Tamarindo, and Jamaicas has exploded in recent years. This is due to both the general market's exposure to aguas frescas, and the rapid growth of the Latino market's population and buying power. The U.S. Latino population is currently growing faster than the general market with growth of 43% over the last 10 yearsor 16.3% of the entire U.S. population. Along with this growth, a new awareness of the potential health dangers of processed, sugary foods has emerged across all markets. Muy Refresco' de Tropical's natural ingredients and real cane sugar mean they're free of fat, cholesterol, caffeine, lactose, and gluten. Supreme's Horchata, Tamarindo, and Jamaica: a naturally delicious, healthier alternative to today's sugary sodas.

Each flavor is available in 64 fl. oz. bottles and sold for $12 each. The first stage in the production process is carried out in the Mixing Department, which removes foreign matter from the raw materials and mixes them in the proper proportions in large vats. The company uses the FIFO method in its process costing system. Production data for the month of August appears below:

Production data:

Units in process, August 1 (materials 90% complete;

conversion 80% complete). . . . . . . . . . . . . . . . . . . . . . 30,000

Units started into production. . . . . . . . . . . . . . . . . . . . . . . . . . 200,000

Units in process, August 31 (materials 75% complete;

conversion 75% complete) . . . . . . . . . . . . . . . . . . . . . . 40,000

Cost data:

Work in process inventory, August 1:

Materials cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $67,800

Conversion cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $30,200

Cost added during the month:

Materials cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $579,000

Conversion cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $248,900

REQUIRED:

1. Prepare a FIFO production report for the Mixing Department for Supreme Manufacturing for the month ended August 31, 2021.

CHECK FIGURE: Material: $2.98 per EU 09/30/2021 Total cost transferred out to next dept.: $948,526

The "What If" part of the assignment will help you determine whether you have correctly used cell referencing in your spreadsheets. In your data block page make the following changes:

1. Beginning inventory for WIP, September 1 is 40,000 units; 75% complete as to material costs and 75% complete as to conversion costs. (This is August 31, 2021 ending inventory from the previous report which becomes September 1, 2021 beginning inventory in this report.)
2. Ending WIP inventory, September 30, 2021 is 20,000 units; 80% complete as to material costs and 75% complete as to conversion costs.
3. Units started into production for September are 200,000.
4. Carryover the material and conversion costs assigned to the ending WIP 8/31/2021 (from the August report) as the beginning WIP inventory prior period costs. (Material Costs $90,000 and Conversion Costs: $38,097.)
5. Costs added during September are: $613,880 for materials and $274,300 for conversion.
6. Change the date in the heading to be "For the Month Ended September 30, 2021".
7. Your spreadsheets should automatically recalculate using the new data.

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