Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. portland pale ale, inc., makes a variety of specia

Portland Pale Ale, Inc., makes a variety of specialty beers at its main brewery in...

50.1K

Verified Solution

Question

Accounting

image

Portland Pale Ale, Inc., makes a variety of specialty beers at its main brewery in Oregon. Production of beer occurs in three main stages: mashing, boiling, and fermenting. Consider the fermenting department, where direct materials (bottles and other packaging) are added when the fermenting process is at 10%. Conversion costs are added evenly during the process. Portland Pale Ale provides the following information related to its top-selling Gypsum Ale for the fermenting department for the month of August: Transferred-in cost (TIC) Direct Materials Conversion Costs Units 50,000 Beginning WIP Inventory Degree of Completion Costs 100% $6,998 ?% $0 5% $320 240,000 Transferred-in in August Cost Incurred in August $42,000 $58,000 $7,611 40,000 Ending WIP Inventory Degree of Completion 100% ?% 15% The units in beginning work in process are 5% complete for conversion costs, while the units in ending inventory are 15% complete for conversion costs. Required: Prepare a production cost reports, using Weighted Average and FIFO for the fermenting department

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students