This window illustrates a Cost of Production Report, assuming the first-in, first-out (FIFO) method.  It is based upon the same data used for the primary example in Chapter 20 of  In that illustration, Navarro Steel used the weighted-average method; it would be best for you to first review that material.

BEGINNING WORK IN PROCESS/CURRENT PRODUCTION:  The key difference between the weighted-average approach and the FIFO approach is that separate equivalent unit quantity and cost information must be maintained for beginning inventory and current period production under FIFO.  Thus, FIFO is computationally more cumbersome.  The following discussion highlights how this difference impacts each section of the Cost of Production Report.

CHANGES IN THE UNIT RECONCILIATION SECTION:  In the FIFO cost of production report below, notice that the lower portion of the "Quantity Schedule" includes 300,000 units that were in process at the beginning of the period and 350,000 units that were started and completed during the period; together this represents the 650,000 units that were completed and transferred to the Skim/Alloy Department.  Unlike weighted average, FIFO requires you to keep these layers separated.  At the start of the month, the 300,000 units in beginning inventory were 60% complete as to materials and 50% complete as to conversion.  Therefore, an additional 120,000 equivalent units of material and 150,000 equivalent units of conversion were incurred to complete these units during June.

CHANGES IN THE COST PER EQUIVALENT UNIT SECTION:  With FIFO, only the current period production cost is considered in determining the cost per equivalent unit for the month.  The total cost assigned to the department for the month is divided by the current period equivalent units.  The cost from beginning inventory will not impact this per unit calculation since the FIFO method does not "average" costs together.

CHANGES IN THE COST ALLOCATION:  The final cost allocation brings forward the cost of the beginning inventory ($2,104,500) and assigns it to units transferred out (remember, first-in, first-out).  Of course, added to this is the additional cost relating to the current period equivalent units of production.  The ending work in process is entirely based upon current period equivalent unit costs.