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

Compute prevention costs-appraisal costs-internal failure , Question: A...

Question: At the beginning of the year, Asquith Company Ltd initiated a quality improvement program. The program was successful in reducing scrap and rework costs. To help asse

Prepare a cash flow forecast, 1.  Prepare a cash flow forecast for the prop...

1.  Prepare a cash flow forecast for the proposal to launch SafeCus in 2010 for a three-year period from 1 January 2010 using the data in the body of the Case Study and discount at

Mathematical derivation of eoq, Mathematical Derivation of EOQ Let cos...

Mathematical Derivation of EOQ Let cost per order is represented via Co. it is the cost incurred every instance one order is placed. Let the economic quantity purchase ever

Planning, what is planning and what part of this activity would you describ...

what is planning and what part of this activity would you describe as planning in the situasion above

Use account analysis to determine fixed cost, Reef Office Supplies is inter...

Reef Office Supplies is interested in estimating the cost involved in hiring new employees. The following information is available regarding the costs of operating the Human Resour

Zero based budgeting, Zero Based Budgeting It is referred to also lik...

Zero Based Budgeting It is referred to also like priority based budgeting. It is a cost advantage approach budgeting where it is assumed that the cost allowance is Zero for a

#manual productions, Vary the force by hiring layoffs. No over time.

Vary the force by hiring layoffs. No over time.

cost classification, Explain the value attached to this common exercise un...

Explain the value attached to this common exercise undertaken by Accountants.

Explain how individual items of costs will be traced, Glaser Health Product...

Glaser Health Products of Ranier Falls, Georgia, is organized functionally into three divisions: Operations, Sales, and Administrative. Purchasing, receiving, materials and product

Accounting 561, Your organization (City Rehab) has been approached by an MC...

Your organization (City Rehab) has been approached by an MCO looking for an exclusive arrangement for the rehabilitation of its hip replacement patients. The MCO is aggressively po

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