Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
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
Ending W.I.P
2,000
2,000 =(100% x 2,000)
1,000= (50% x 2,000)
Units accounted for
11,000
3rd Step
Cost Determination
Material Cost
Beginning W.I.P Materials: Conversion
3,000
-
Current costs
Cost to account for:
76,000
33,000
43,000
80,000
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
Beginning W.I.P Materials
Conversion:
Cost of work done to complete beginning W.I.P
* costs
750 x 4
Costs Accounted for
Find Out Overhead Application Rate The given is the budget of Superb Engineering Works for the 2002 year Factory overheads Kshs 62,000
What are the major arguments for absorption costing?
These should be distinguished from estimated liabilities. Estimated liabilities are identified liabilities where the amount is uncertain. Contingent liabilities conversely are not
draw up statements of affairs to show the profit or loss for the year
F ixed Overhead Variance (FOV) Fixed overhead variance has been described by ICMA, London, as 'the variation between the standard cost of fixed overhead absorbed in the pro
Corporation has determined the contribution margin ratio is 35% and the income tax rate is 40%. Required: A) Assume break-even volume in dollars is $1,500,000. What are total fixed
labour cost related case study with solution
Presented below is a list of terms relating to cost behavior, followed by definitions of those terms: a. Rent on a factory building b. Engineering approach c. Fixed cost
Total costs include both variable costs and fixed costs. Variable costs are costs which can beeasily identified or related to a cost per unit or activity level of some kind for exa
Important Points Regarding to the Variance Analysis Variance reporting concentrates on both with favourable and unfavourable variances. Normally unfavourable variances are pun
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd