Final answer:
To calculate the total costs for Department 2, add the opening WIP, direct materials, direct labor, and factory overhead costs, while also accounting for the ending WIP, which requires additional data to determine.
Step-by-step explanation:
The question you've asked pertains to calculating the total costs to be accounted for on the production cost report for Department 2 for a specific period using the FIFO costing method. To determine the total costs, you will need to add the costs of direct materials from Department 1, direct labor, and factory overhead to the costs already associated with the work-in-process inventory at both the beginning and end of the period.
Based on the information provided, for Department 2, the costs involved are the opening work-in-process of $2,600 (for the 2,600 units 1/4 completed), costs for direct materials from Department 1 which are $5,280 (for the 8,800 units), direct labor costs of $9,400, and factory overhead of $7,600. The ending work-in-process inventory will also have to be accounted for; however, it seems that there is not enough detail provided to give a precise value for the ending inventory. Using FIFO costing, the total costs for the units completed during the period will not include the costs from the beginning work-in-process, but the costs for the units started and completed during the period plus the costs needed to complete the beginning work-in-process units.
The total costs to be accounted for are:
- Opening WIP: $2,600
- Direct Materials: $5,280
- Direct Labor: $9,400
- Factory Overhead: $7,600
- Ending WIP: Not provided, needs calculation based on additional data
The value for Ending WIP would need the percent completion and the costs attributable to that work for an accurate total cost calculation.