I-20.011poundsAt the end end of February 100 000 pounds were still in process and wereBandit Dog Food uses the FIFO process costing method of accounting for production. Three primary ingredients included in each blend are vitamins, beef, and grain. Other components like food coloring and salt are insignificant in cost and are considered as indirect material elements in establishing the overhead allocation formulas. Factory overhead is applied on the basis of direct labor cost. The entire production process is completed within one department. All raw material is introduced at the beginning of the production process, while conversion costs occur uniformly throughout the production cycle. Beginning work in process, at February 1, consisted of 90,000 pounds that were 80% complete, and had assigned costs as follows:Direct material45,000$ Direct labor20,000Factory overhead15,000February's production cycle resulted in the introduction of an additional 340,000 . , ,, judged to be 40% complete.
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