Example of process cost report, Cost Accounting

Assignment Help:

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

 


Related Discussions:- Example of process cost report

Determine the expected return, Imagine a world in which there are only two ...

Imagine a world in which there are only two investment assets: Hasbro Inc. Stock (HAS) and McDonalds stock (MCD). The table below lists annual total returns (%) for each of the las

mix and yield component variances, Describe the manner in which a material...

Describe the manner in which a materials usage variance is divided into mix and yield component variances.

What is cmmi, Capability Maturity Model Integration (CMMI) is a process dev...

Capability Maturity Model Integration (CMMI) is a process development approach that gives organizations with the essential elements of effective processes. It can be used to gui

Cvp and computer applications, CVP and Computer Applications The broad...

CVP and Computer Applications The broad availability of personal computers encourages more managers to apply cost volume profit analysis. Computers can quickly create the comp

Objective type question, 9. When in the management process do managers seek...

9. When in the management process do managers seek an answer to the question "Did we meet our cost-reduction goals for non-value-adding activities?" a. Planning b. Performing c. Ev

Prepare an eps summary for income statement, You are thinking of investing ...

You are thinking of investing in one of two corporations, both in the same industry, the XYZ Corporation or the ABC Corporation. Selected data follows: Sales data for the year e

Labor transactions, Labor Transactions (i) Wages Paid in cash (ii) ...

Labor Transactions (i) Wages Paid in cash (ii) Wages incurred like a) Direct labor or else b) Indirect labor  In the Financial Books  In

Cost Accounting, Cost Accounting advantage and features

Cost Accounting advantage and features

What was the cost of goods manufactured for the period, A company started w...

A company started with $0 in direct materials, purchased $5,000 of materials, and ended with $300 in materials. Direct labor equaled $4,000. The applied overhead for the period was

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd