Example of Process Cost Report

Let suppose that the beginning work in progress in a Company in the month of November was 1,000 units that were 100 percent complete in terms of materials and 75 percent complete like to conversion.  Raw materials costs relating to beginning work in progress amounted to shs.3,000 and conversion was shs.1,000.  10,000 units were completed throughout the period and transferred to finished goods stock account.  2,000 units were now in process and were 100 percent complete in relation to materials and 50 percent complete in relation to conversion costs.  Costs incurred throughout the period were raw materials shs.33,000, conversion shs.43,000;

Required 

Employ both FIFO and weighted average methods, to find out cost per equivalent unit and value of ending inventory.  Organize the process cost report.

Process Cost Report

For the month of December

For Weighted Average Method

1st Step	Physical Units
	Beginning W.I.P	1,000
	Units started during the period	11,000 (10,000 + 2,000 - 1,000)
	Units to account for:	12,000
2nd Step	Equivalent Units
		Total Units	Materials			Conversion Costs
Units completed during the period:		10,000	10,000			10,000
Ending W.I.P		2,000	2,000 =(100% x 2,000)			1,000= (50% x 2,000)
Units accounted for		12,000	12,000			11,000
3rd Step	Cost Determination
		Total Units	Material Cost			Conversion Costs
Beginning W.I.P Materials: Conversion		3,000	-			-
Current costs		1,000	-			-
Cost to account for:		76,000	33,000			43,000
		80,000
			33,000			43,000
			11,000			10,250
		Shs.7	Shs.3			Shs.4
4th Step:	Cost Assignment:
Units started and completed during the current period: 9,000 x 7:						63,000
Ending W.I.P =  Materials:  2,000 x 3:			6,000
=  Conversion: 1,000 x 4:			4,000			10,000
Beginning W.I.P Materials			3,000
Conversion:			1,000			4,000
Cost of work done to complete beginning W.I.P
* costs			750 x 4			3,000
Costs Accounted for						80,000

 

Posted Date: 2/7/2013 2:53:30 AM | Location : United States

Ask an Expert

Related Discussions:- Example of process cost report, Assignment Help, Ask Question on Example of process cost report, Get Answer, Expert's Help, Example of process cost report Discussions

Write discussion on Example of process cost report
Your posts are moderated

Write your message here..

Related Questions

Actual operating cost method, On May 9th, David paid $34,500 (including sal... On May 9th, David paid $34,500 (including sales tax) to purchase a used Audi A8 that he uses 90% of the time for business. No trade-in was involved. David uses the actual operating

Joint cost allocation, advantage of physical measure advantage of physical measure

measure the idle time variance, PH plc operates a modern factory that chan... PH plc operates a modern factory that changes chemicals into fertilizer. Due to the the demand for  its product  is  seasonal,  the  company expects  that  there will be an average

Contract costing, who to prepare contract account who to prepare contract account

Applications of funds, Requirement for additional Funds A business would... Requirement for additional Funds A business would require additional capital for two purposes: 1. Financing additional fixed assets, and

Traditional Costing System and Job Order Costing System, Hello, I''m curren... Hello, I''m currently doing a research on a company and planning an Activity Based Costing system since the company is using Traditional Costing system to allocate the overhead to

Accrued income, Accrued income is an amount earned although not in reality ... Accrued income is an amount earned although not in reality received during the accounting period or till the date of preparation of last accounts for the period concerned. The firs

Internal sources of funds, While we are looking for sources funds it is oth... While we are looking for sources funds it is other than natural to start searching from home. What do we have? During examining the requirement for working capital we could also ma

Decision analysis , can you guys do a project which is due in 2 weeks can you guys do a project which is due in 2 weeks

Methods for resolving transfer pricing conflicts, what are the advantages a... what are the advantages and disadvantages of marginal costs plus a fixed lump-sum fee?