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

Process cost report, Process Cost Report This is a commonly employed s...

Process Cost Report This is a commonly employed statement that traces the flow of units produced and costs incurred in the production process. The report is prepared for every

Compute the sales activity variance for each product, The next year's budge...

The next year's budget for Benny, Inc., is given below: Product 1-2 Sales $945,000-688500 Variable costs 459,900-297,000 Fixed costs 300,000-3

Adjusting entry for Inventory, What are the five accounts used in adjusting...

What are the five accounts used in adjusting entry for periodic inventory at the end of the year?

What are the variable expenses per unit, Superior Door Company sells pre-hu...

Superior Door Company sells pre-hung doors to home builders. The doors are sold for $60 each. Variable costs are $42 per door and fixed costs total $450,000 per year. The company i

introduction of internal rate of return , Introduction of Internal Rate of...

Introduction of Internal Rate of Return The traditional internal rate of return (IRR) method of project selection has been shown to be inferior to the NPV method due to vario

Comment on the cash- flow impacts, Chester & Wayne is a regional food distr...

Chester & Wayne is a regional food distribution company. Mr. Chester, CEO, has asked your assistance in preparing cash-flow information for the last three months of this year. Sele

Will by means of fca save money, Q. WILL BY MEANS OF FCA SAVE MONEY? A...

Q. WILL BY MEANS OF FCA SAVE MONEY? Ans. It depends. in the end, the more departments know about what it obtain to deliver a unit of service, the more efficiently they can

Example of batch costing, Example of Batch Costing The budgeted variab...

Example of Batch Costing The budgeted variable overheads of a company for the year of 2001 are as given as: Department                Overhead (shs.)

The cost cycle - double entry system, entries to be entered into a ledger a...

entries to be entered into a ledger account for the month of July 2009 & prepare an incoem statement. balances at 1/7/2009 Materials control $6150 Labour control (accrued wages)

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