Process Costing
Short Description
Process costing...
Description
CMCA Corporation Department A Cost of Production Report For the month of April 2013 Quantity Schedule In Process 4/1 Started Total
Material X
Actual Qty 15,000.00 95,000.00 110,000.00
WD 100%
Material Y
EUP
WD
15,000.00
0%
Conversion Cost EUP
WD -
EUP
25%
3,750.00
Transferred to Department B In Process 4/1 Started In Process 4/30 Total
15,000.00 85,000.00 10,000.00 110,000.00
0%
-
100%
15,000.00
75%
11,250.00
1
85,000.00
100%
85,000.00
1
25%
2,500.00
1
98,750.00
2
100%
85,000.00
100%
100%
10,000.00
0%
-
95,000.00
100,000.00
Cost Charged to Department A Total Cost
Overhead
298,750.00 385,000.00 1,629,375.00 2,444,062.50
Total cost to be accounted for
4,757,187.50
Material X Material Y Labor
IP 4/1
37,500.00
Added This Mo.
EUP
261,250.00
95,000.00 100,000.00
90,000.00
385,000.00 1,569,375.00 2,354,062.50
187,500.00
4,569,687.50
60,000.00
98,750.00 98,750.00
Unit Cost
2.750000 3.850000 15.892405 23.838608 46.331013
2 2 2 2
Cost accounted as follows: Transferred to Department B In Process 4/1 Cost last month
187,500.00
2
57,750.00 178,789.56 268,184.34
2
Cost to complete Material Y
15,000.00
X
Labor
11,250.00
X
Overhead
11,250.00
X
85,000.00
X
Started and completed
3.850000 15.892405 23.838608 46.331013
Total Completed and transferred
2
692,223.89
2
3,938,136.08
2
4,630,359.97
In Process 4/30 10,000.00
X
Labor
Material X
2,500.00
X
Overhead
2,500.00
X
Total Cost as accounted for
2.7500 15.8924 23.8386
27,500.00 39,731.01 59,596.52
2 2
126,827.53
2
4,757,187.50
29
CMCA Corporation Department B Cost of Production Report For the month of April 2013 Quantity Schedule In Process 4/1 Received from Dept. A Total
Material Z
Actual Qty 25,000 100,000 125,000
WD 0%
Skill M
EUP
Skill N
WD
EUP
WD
80%
20,000.00
0%
20%
5,000.00
100%
82,000.00 100%
82,000.00
18,000.00 100%
18,000.00
-
Overhead EUP
WD -
EUP
40%
8,000.00
25,000.00
60%
3,000.00
1
100%
82,000.00
100%
82,000.00
1
60%
10,800.00
80%
14,400.00
1
99,400.00
1
Transferred to Finished Goods In Process 4/1 Received In Process 4/30 Total Average
25,000 100% 82,000 100% 18,000 100% 125,000
25,000.00
125,000.00
105,000.00
117,800.00
Cost Charged to Department A Total Cost
Cost from Dept A
IP 4/1
5,787,859.97
1,157,500.00
561,000.00 312,000.00 270,000.00
48,000.00
23,000.00 1,166,000.00 6,953,859.97
Added This Mo.
EUP
Unit Cost
4,630,359.97
100,000.00
46.303600
1
561,000.00
125,000.00 105,000.00
270,000.00
117,800.00
4.488000 2.514286 2.292020
1
264,000.00
2,000.00
21,000.00
99,400.00
0.211268
1
50,000.00 1,207,500.00
1,116,000.00 5,746,359.97
9.505574 55.809173
1
Cost added this Dept. Material Z Skill M Skill N Overhead Total Added This Department Total cost to be accounted for
1 1
CMCA Corporation Department B Cost of Production Report For the month of April 2013 Quantity Schedule In Process 4/1 Received from Dept. A Total
Material Z
Actual Qty 25,000 100,000 125,000
WD 0%
Skill M
EUP
Skill N
WD
EUP
WD
80%
20,000.00
0%
20%
5,000.00
100%
82,000.00 100%
82,000.00
18,000.00 100%
18,000.00
-
Overhead EUP
WD -
EUP
40%
8,000.00
25,000.00
60%
3,000.00
1
100%
82,000.00
100%
82,000.00
1
60%
10,800.00
80%
14,400.00
1
99,400.00
1
Transferred to Finished Goods In Process 4/1 Received In Process 4/30 Total Average
25,000 100% 82,000 100% 18,000 100% 125,000
25,000.00
125,000.00
105,000.00
117,800.00
Cost Charged to Department A Total Cost
Cost from Dept A
IP 4/1
5,787,859.97
1,157,500.00
561,000.00 312,000.00 270,000.00
48,000.00
23,000.00 1,166,000.00 6,953,859.97
Added This Mo.
EUP
Unit Cost
4,630,359.97
100,000.00
46.303600
1
561,000.00
125,000.00 105,000.00
270,000.00
117,800.00
4.488000 2.514286 2.292020
1
264,000.00
2,000.00
21,000.00
99,400.00
0.211268
1
50,000.00 1,207,500.00
1,116,000.00 5,746,359.97
9.505574 55.809173
1
Cost added this Dept. Material Z Skill M Skill N Overhead Total Added This Department Total cost to be accounted for
1 1
CMCA Corporation Department B Cost of Production Report For the month of April 2013 Quantity Schedule In Process 4/1 Received from Dept. A Total
Material Z
Actual Qty 25,000 100,000 125,000
WD 0%
Skill M
EUP
Skill N
WD
EUP
WD
80%
20,000.00
0%
20%
5,000.00
100%
82,000.00 100%
82,000.00
18,000.00 100%
18,000.00
-
Overhead EUP
WD -
EUP
40%
8,000.00
25,000.00
60%
3,000.00
1
100%
82,000.00
100%
82,000.00
1
60%
10,800.00
80%
14,400.00
1
99,400.00
1
Transferred to Finished Goods In Process 4/1 Received In Process 4/30 Total Average
25,000 100% 82,000 100% 18,000 100% 125,000
25,000.00
125,000.00
105,000.00
117,800.00
Cost Charged to Department A Total Cost
Cost from Dept A
IP 4/1
Added This Mo.
5,787,859.97
1,157,500.00
561,000.00 312,000.00 270,000.00
48,000.00
23,000.00
EUP
Unit Cost
4,630,359.97
100,000.00
46.303600
1
561,000.00
125,000.00 105,000.00
270,000.00
117,800.00
4.488000 2.514286 2.292020
1
264,000.00
2,000.00
21,000.00
99,400.00
0.211268
1
1,166,000.00
50,000.00
1,116,000.00
9.505574
1
6,953,859.97
1,207,500.00
5,746,359.97
55.809173
Cost added this Dept. Material Z Skill M Skill N Overhead Total Added This Department Total cost to be accounted for
1 1
Cost accounted as follows Transferred to Finished Goods In Process 4/1 Cost last month
1,207,500.00
Cost to complete Material
25,000
X
4.488000
112,200.00
1
Skill M
5,000
X
2.514286
12,571.43
1
Skill N
25,000
X
2.292020
57,300.51
1
Overhea
3,000
X
0.211268
633.80
1,390,205.74
1
Received and Co
82,000
X
55.809173
255,402,434.31
4,576,352.22
1
5,966,557.96
Total In Process 4/30 Cost from Dept A
18,000
X
46.303600
833,464.79
1
Material Z
18,000
X
4.488000
80,784.00
1
Skill M
18,000
X
2.514286
45,257.14
1
Skill N
10,800
X
2.292020
24,753.82
Overhead
14,400
X
0.211268
3,042.25 50%
0
1
100%
Skill M
Skill N
100%
100%
987,302.01
1
6,953,859.97
20
5,966,557.96
Total In Process 4/30 Cost from Dept A
18,000
X
46.303600
833,464.79
1
Material Z
18,000
X
4.488000
80,784.00
1
Skill M
18,000
X
2.514286
45,257.14
1
Skill N
10,800
X
2.292020
24,753.82
Overhead
14,400
X
0.211268
3,042.25 50%
1
987,302.01
1
6,953,859.97
20
100%
Skill M
Skill N
100%
100%
0
F&A Company Cost of Production Report For the month of April 2013
Qty. Schedule In process Beginning Started this period Total Completed and Transferred In process Beginning Started this period In process End
Cost Charged to the Department
Actual Units 2,000 14,000 16,000 2,000 12,500 1,500 16,000
Materials WD EUP 30% 600
WD 25%
70% 100% 60%
75% 100% 50%
1,400 12,500 900 14,800
Labor EUP 500
1,500 12,500 750 14,750 Total Cost
F&A Company Cost of Production Report For the month of April 2013
Qty. Schedule In process Beginning Started this period Total Completed and Transferred In process Beginning Started this period In process End
Actual Units 2,000 14,000 16,000 2,000 12,500 1,500 16,000
Materials WD EUP 30% 600
WD 25%
70% 100% 60%
75% 100% 50%
1,400 12,500 900 14,800
Labor
Cost Charged to the Department In Process 4/1/13 Cost added This Month Materials Labor Overhead Total Cost added this month Total Cost to be accounted for Cost accounted as follows: Completed and Transferred In Process 4/1/13 Cost last month Cost to complete: Materials Labor Overhead Started and Completed In process end Materials Labor Overhead Total Cost as accounted for
EUP 500
1,500 12,500 750 14,750 Total Cost 5,000.00 81,400.00 121,687.50 85,625.00 288,712.50 293,712.50
5,000 1,400 1,500 900 12,500
900 750 300
X X X X
5.50 8.25 6.25 20.00
7,700 12,375 5,625
X X X
5.50 8.25 6.25
4,950 6,188 1,875
Materials is added 30% at the start, plus 30% when 50% complete as to labor and the remainin the products are 90% complete as to labor.
Required Prepare the cost of production report of F&A Company for the month of April assuming t current cost per units for Materials is P5.50, Labor is P8.25, and Overhead is P6.25.
Overhead WD EUP 55% 1,100
45% 100% 20%
EUP
14,800 14,750 13,700
900 12,500 300 13,700
2
2 2 2
Unit Cost
5.50 8.25 6.25 20.00 20.00
2 2 2
2 2
30,700 250,000
2
280,700.00
2
2 2
13,012.50 293,712.50
40% is added only when
2 28
e IP beg cost is P5,000,
CMCA Corporation Department A Cost of Production Report For the month of April 2013 Quantity Schedule In Process 4/1 Started Total
Material X
Actual Qty 15,000.00 95,000.00 110,000.00
WD 100%
Material Y
Conversion Cost
EUP
WD
EUP
WD
EUP
15,000.00
25%
3,750.00
60%
9,000.00
75%
11,250.00
40%
6,000.00
1
Transferred to Department B In Process 4/1 Started In Process 4/30 Total
15,000.00 85,000.00 10,000.00 110,000.00
0%
-
100%
85,000.00
100%
85,000.00
100%
85,000.00
1
100%
10,000.00
100%
10,000.00
90%
9,000.00
1
100,000.00
2
95,000.00
106,250.00
Cost Charged to Department A Total Cost
Overhead
298,750.00 230,510.00 1,629,375.00 2,444,062.50
Total cost to be accounted for
4,602,697.50
Material X Material Y Labor
IP 4/1
Added This Mo.
EUP
37,500.00
261,250.00
95,000.00
7,950.00
106,250.00
90,000.00
222,560.00 1,569,375.00 2,354,062.50
195,450.00
4,407,247.50
60,000.00
100,000.00 100,000.00
Unit Cost
2.750000 2.094682 15.693750 23.540625 44.079057
1 1 1 2
Cost accounted as f ollows: Transferred to Department B In Process 4/1 Cost last month
195,450.00
2
23,565.18 94,162.50 141,243.75
2
Cost to complete Material Y
11,250.00
X
Labor
6,000.00
X
Overhead
6,000.00
X
85,000.00
X
Started and completed
2.094682 15.693750 23.540625 44.079057
2
Total Completed and transferred
454,421.43
2
3,746,719.88
2
4,201,141.30
In Process 4/30 Material X
10,000.00
X
Material Y
10,000.00
X
Labor
9,000.00
X
Overhead
9,000.00
X
2.7500 2.0947 15.6938 23.5406
27,500.00 20,946.82 141,243.75 211,865.63
2 2 2
Total Cost as accounted for To record the cost incurred for the month Work in process - Dept A
4,407,247.50
Work in Process - Dept B
1,116,000.00
Raw Material
#REF!
Various Credit/Conversion Cost
1,590,375.00
To record the cost transferred to Dept B. Work In Process - Dept B
4,201,141.30
Work in Process - Dept A
4,201,141.30
To Record the FG Inventory FG Inventory
-
401,556.20
2
4,602,697.50
28
Total Cost as accounted for
28
4,602,697.50
To record the cost incurred for the month Work in process - Dept A
4,407,247.50
Work in Process - Dept B
1,116,000.00
Raw Material
#REF!
Various Credit/Conversion Cost
1,590,375.00
To record the cost transferred to Dept B. Work In Process - Dept B
4,201,141.30
Work in Process - Dept A
4,201,141.30
To Record the FG Inventory FG Inventory
-
Work In Process - Dept B
-
CMCA Corporation Department B Cost of Production Report For the month of April 2013 Quantity Schedule In Process 4/1 Received from Dept. A Total
Material Z
Actual Qty 25,000 100,000 125,000
WD 0%
Skill M
EUP
Skill N
WD
EUP
WD
80%
20,000.00
0%
25,000.00
20%
5,000.00
100%
82,000.00
100%
82,000.00
18,000.00
100%
18,000.00
-
Overhead EUP
WD
EUP
40%
10,000.00
25,000.00
60%
15,000.00
100%
82,000.00
100%
82,000.00
60%
10,800.00
80%
14,400.00
-
Transferred to Finished Goods In Process 4/1 Received In Process 4/30 Total Average
25,000 100% 82,000 100% 18,000 100% 125,000
125,000.00
105,000.00
117,800.00
111,400.00
Cost Charged to Department A Total Cost
Cost from Dept A
IP 4/1
5,358,641.30
1,157,500.00
561,000.00 312,000.00 270,000.00
48,000.00
23,000.00 1,166,000.00 6,524,641.30
Added This Mo.
EUP
Unit Cost
4,201,141.30
100,000.00
42.011413
561,000.00
125,000.00
264,000.00
105,000.00
270,000.00
117,800.00
4.488000 2.514286 2.292020
2,000.00
21,000.00
111,400.00
0.188510
50,000.00 1,207,500.00
1,116,000.00 5,317,141.30
Cost added this Dept. Material Z Skill M Skill N Overhead Total Added This Department Total cost to be accounted for
9.482816 51.494229
CMCA Corporation Department B Cost of Production Report For the month of April 2013 Quantity Schedule In Process 4/1 Received from Dept. A Total
Material Z
Actual Qty 25,000 100,000 125,000
WD 0%
Skill M
EUP
Skill N
WD
EUP
WD
80%
20,000.00
0%
25,000.00
20%
5,000.00
100%
82,000.00
100%
82,000.00
18,000.00
100%
18,000.00
-
Overhead EUP
WD
EUP
40%
10,000.00
25,000.00
60%
15,000.00
100%
82,000.00
100%
82,000.00
60%
10,800.00
80%
14,400.00
-
Transferred to Finished Goods In Process 4/1 Received In Process 4/30 Total Average
25,000 100% 82,000 100% 18,000 100% 125,000
125,000.00
105,000.00
117,800.00
111,400.00
Cost Charged to Department A Total Cost
Cost from Dept A
IP 4/1
5,358,641.30
1,157,500.00
561,000.00 312,000.00 270,000.00
48,000.00
23,000.00
Added This Mo.
EUP
Unit Cost
4,201,141.30
100,000.00
42.011413
561,000.00
125,000.00
264,000.00
105,000.00
270,000.00
117,800.00
4.488000 2.514286 2.292020
2,000.00
21,000.00
111,400.00
0.188510
1,166,000.00
50,000.00
1,116,000.00
9.482816
6,524,641.30
1,207,500.00
5,317,141.30
51.494229
Cost added this Dept. Material Z Skill M Skill N Overhead Total Added This Department Total cost to be accounted for
Cost accounted as follows Transferred to Finished Goods In Process 4/1 Cost last month
1,207,500.00
Cost to complete Material
25,000
X
4.488000
112,200.00
Skill M
5,000
X
2.514286
12,571.43
Skill N
25,000
X
2.292020
57,300.51
Overhea
15,000
X
0.188510
2,827.65
1,392,399.59
Received and Co
82,000
X
51.494229
217,435,760.67
4,222,526.78
5,614,926.36
Total In Process 4/30 Cost from Dept A
18,000
X
42.011413
756,205.43
Material Z
18,000
X
4.488000
80,784.00
Skill M
18,000
X
2.514286
45,257.14
Skill N
10,800
X
2.292020
24,753.82
Overhead
14,400
X
0.188510
2,714.54
909,714.94 6,524,641.30
0%
0
50%
100%
Skill M
Skill N
100%
100%
5,614,926.36
Total In Process 4/30 Cost from Dept A
18,000
X
42.011413
756,205.43
Material Z
18,000
X
4.488000
80,784.00
Skill M
18,000
X
2.514286
45,257.14
Skill N
10,800
X
2.292020
24,753.82
Overhead
14,400
X
0.188510
2,714.54
909,714.94 6,524,641.30
0%
50%
100%
Skill M
Skill N
100%
100%
0
1 1 1 2
1 1 1 1 1 1
1 1 1 2
1 1 1 1 1 1
1 1 1 1 1 1
1 1 1 1 1 22
1 1 1 1 1 22
77
77 Para kareng mak
40% 60%
mulala
PPP Manufacturing Co. operates two consecutive departments (A and B). The following information pert production of the two departments for August 2013. Department A
Depart
Units
WD
Units
6,000
30%
7,000
Production Data In process 8/1 Started
35,000
Transferred out Normal Loss In Process 8/31
?
31,000
1,000
1,500
?
20%
7,500
Cost Data In Process 8/1 Transferred in Cost in this department Materials Labor
7,920.00 1,785.00 891.00
3,885.00 1,890.00
927.00
2,226.00
Materials
10,395.00
35,000.00
Labor Overhead
17,136.00 17,472.00 Beginning End
13,708.00 15,645.00 50% beg., Sta
Overhead Transferred in Cost added in August
Materials are added at Loss occurs
PPP Manufacturing Company Cost of Production Report For the month of August 2013
ins to the
ent B
WD 60%
40%
Qty. Schedule In process Beginning Started this period Total Completed and Transferred In process Beginning Started this period Normal Loss In process End
Actual Units 6,000 35,000 41,000 6,000 27,000 1,000 7,000 41,000
Materials WD EUP 100% 6,000
0% 100% 100% 100%
27,000 1,000 7,000 35,000
Cost charged to Department A Total Materials Labor Overhead Adjustment for lost units Total Cost to be Acct for:
0% end. t
Cost accounted as follows: Transferred to Department B: In Process 8/1 Cost Last Month Cost to complete Labor Overhead Adjusment for LU Started and Completed Transferred to SGI In Process 8/31 Materials Labor Overhead
IP 8/1
Current
12,180.00 18,027.00 18,399.00
1,785.00 891.00 927.00
10,395.00 17,136.00 17,472.00
48,606.00
3,603.00
45,003.00
3,603.00 4,200 4,200 6,000 27,000
0.5100 0.5200 0.0099 1.3369
2,142.00 2,184.00 59.45
7,000 1,400 1,400
0.2970 0.5100 0.5200
2,079.00 714.00 728.00
Department B
Qty. Schedule In process Beginning Started this period
Actual Units 7,000 33,000
Materials WD EUP 50% 3,500
Total Completed and Transferred In process Beginning Started this period Normal Loss In Process End
40,000 7,000 24,000 1,500 7,500 40,000
50% 100% 0% 50%
3,500 24,000 3,750 31,250
Cost charged to Department B Total Cost from Department A Cost Added this Dept. Materials Labor Overhead Total Cost Added Adjustment for loss units Total Cost to be Acct for:
IP 8/1
Current
52,005.00
7,920.00
44,085.00
38,885.00 15,598.00 17,871.00 72,354.00
3,885.00 1,890.00 2,226.00 8,001.00
35,000.00 13,708.00 15,645.00 64,353.00
124,359.00
15,921.00
108,438.00
Cost accounted as follows: Transferred to Finished Goods Inventory In Process 8/1 Cost Last Month Cost to complete Materials 3,500 Labor 2,800 Overhead 2,800 Received and Completed 24,000
1.120000 0.460000 0.525000 3.504524
3,920.00 1,288.00 1,470.00
In Process 8/31 Cost from Department A Materials Labor Overhead Adjustment for lost units
7,500 3,750 3,000 3,000 7,500
1.399524 1.1200 0.4600 0.5250 -
10,496.43 4,200.00 1,380.00 1,575.00 -
Adjustment for Lost Units Department A
Cost of Normal Loss 1,000 1.3270
1,327.00
1,500
2,099.29
Deparment B
15,921.00
1.399524
Labor WD 30%
EUP -
70% 100% 100% 20%
4,200 27,000 1,000 1,400 33,600
EUP
Unit Cost
35,000 33,600 33,600
7,988.45 36,096.55
0.297000 0.510000 0.520000 0.009909 1.336909
44,085.00 1,000.00
3,521.00 48,606.00
Labor WD 60%
EUP -
40% 100% 0% 40%
EUP
2,800 24,000 3,000 29,800
Unit Cost
31,500
1.399524
31,250 29,800 29,800
1.120000 0.460000 0.525000 2.105000 3.504524
22,599.00 84,108.57
106,707.57
107469.4762
17,651.43 124,359.00
17889.52381
RGU Adjusment 33,000.00 0.0402121 31,500.00
0.0666440
PPP Manufacturing Co. operates two consecutive departments (A and B). The following information pert production of the two departments for August 2013. Department A
Depart
Units
WD
Units
6,000
30%
7,000
Production Data In process 8/1 Started
35,000
Transferred out Normal Loss In Process 8/31
?
31,000
1,000
1,500
?
20%
7,500
Cost Data In Process 8/1 Transferred in Cost in this department Materials Labor
7,920.00 1,785.00 891.00
3,885.00 1,890.00
927.00
2,226.00
Materials
10,395.00
35,000.00
Labor Overhead
17,136.00 17,472.00 Beginning End
13,708.00 15,645.00 50% beg., Sta
Overhead Transferred in Cost added in August
Materials are added at Loss occurs
PPP Manufacturing Company Cost of Production Report For the month of August 2013
ins to the
ent B
WD 60%
40%
Qty. Schedule In process Beginning Started this period Total Completed and Transferred In process Beginning Started this period Normal Loss In process End
Actual Units 6,000 35,000 41,000 6,000 27,000 1,000 7,000 41,000
Materials WD EUP 100% 6,000
0% 100% 100% 100%
27,000 1,000 7,000 35,000
Cost charged to Department A Total Materials Labor Overhead Adjustment for lost units Total Cost to be Acct for:
0% end. t
Cost accounted as follows: Transferred to Department B: In Process 8/1 Cost Last Month Cost to complete Labor Overhead Adjusment for LU Started and Completed In Process 8/31 Materials Labor Overhead
IP 8/1
Current
12,180.00 18,027.00 18,399.00
1,785.00 891.00 927.00
10,395.00 17,136.00 17,472.00
48,606.00
3,603.00
45,003.00
3,603.00 4,200 4,200 6,000 27,000
0.5100 0.5200 0.0402 1.3672
2,142.00 2,184.00 241.27
7,000 1,400 1,400
0.2970 0.5100 0.5200
2,079.00 714.00 728.00
Department B
Qty. Schedule In process Beginning Started this period
Actual Units 7,000 33,000
Materials WD EUP 50% 3,500
Total Completed and Transferred In process Beginning Started this period Normal Loss In Process End
40,000 7,000 24,000 1,500 7,500 40,000
50% 100% 0% 50%
3,500 24,000 3,750 31,250
Cost charged to Department B Total Cost from Department A Cost Added this Dept. Materials Labor Overhead Total Cost Added Adjustment for loss units Total Cost to be Acct for:
IP 8/1
Current
53,005.00
7,920.00
45,085.00
38,885.00 15,598.00 17,871.00 72,354.00
3,885.00 1,890.00 2,226.00 8,001.00
35,000.00 13,708.00 15,645.00 64,353.00
125,359.00
15,921.00
109,438.00
Cost accounted as follows: Transferred to Finished Goods Inventory In Process 8/1 Cost Last Month Cost to complete Materials 3,500 Labor 2,800 Overhead 2,800 Received and Completed 24,000
1.120000 0.460000 0.525000 3.536270
3,920.00 1,288.00 1,470.00
In Process 8/31 Cost from Department A Materials Labor Overhead Adjustment for lost units
7,500 3,750 3,000 3,000 7,500
1.431270 1.1200 0.4600 0.5250 -
10,734.52 4,200.00 1,380.00 1,575.00 -
Adjustment for Lost Units Department A
Cost of Normal Loss 1,000 1.3270
1,327.00
1,500
2,146.90
Deparment B
15,921.00
1.431270
Labor WD 30%
EUP -
70% 100% 100% 20%
4,200 27,000 1,000 1,400 33,600
EUP
Unit Cost
35,000 33,600 33,600
8,170.27 36,914.73
0.297000 0.510000 0.520000 0.040212 1.367212
45,085.00
3,521.00 48,606.00
Labor WD 60%
EUP -
40% 100% 0% 40%
EUP
2,800 24,000 3,000 29,800
Unit Cost
31,500
1.431270
31,250 29,800 29,800
1.120000 0.460000 0.525000 2.105000 3.536270
22,599.00 84,870.48
107,469.48
107469.4762
17,889.52 125,359.00
17889.52381
RGU Adjusment 33,000.00 0.0402121 31,500.00
0.0681557
Normal Loss >
> >
Costs of normal loss are accounted as product cost, meaning all unrecoverable cost of normal loss are to be shouldered by the remaining good units Remaining good units are those units who already passed the quality control inspection (QCI). Work done assigned to normal lost units For Materials, it will depend on when do they add the materials For Conversion Cost if evenly applied If discovered at the start work done is Zero If discovered at the end work done is 100% If discovered during work done is Zero If discovered at specific point of production work done is equal to QCI
Abnormal Loss >
>
Unrecoverable cost of abnormal spoilage is accounted separately, which is recognized as either part of the Factory Overhead Control or Period Cost. Work done assigned to normal For Materials, it will depend on when do they add the materials For Conversion Cost If discovered at the start work done is Zero If discovered at the end work done is 100% If discovered during work done is Zero If discovered at specific point of production work done is equal to QCI
PPP Manufacturing Co. operates two consecutive departments (A and B). The following information pert production of the two departments for August 2013. Department A
Depart
Units
WD
Units
6,000
30%
7,000
Production Data In process 8/1 Started
35,000
Transferred out Loss Units In Process 8/31
?
31,000
1,000
1,500
?
20%
7,500
Cost Data In Process 8/1 Transferred in
7,920.00
Cost in this department Materials Labor Overhead
1,785.00 891.00 927.00
3,885.00 1,890.00 2,226.00
10,395.00 17,136.00 17,472.00
35,000.00 13,708.00 15,645.00
Transferred in Cost added in August Materials Labor Overhead
Materials are added at Beginning 50% beg., Loss occurs End Sta Normal loss are expected at 2% of remaining good units in Department A and 1.5% of units received in Depart
PPP Manufacturing Company Cost of Production Report For the month of August 2013
ins to the
ent B
WD 60%
40%
Qty. Schedule In process Beginning Started this period Total Completed and Transferred In process Beginning Started this period Normal Loss Abnormal Loss In process End
Actual Units 6,000 35,000 41,000 6,000 27,000 660 340 7,000 41,000
Materials WD EUP 100% 6,000
0% 100% 100% 100% 100%
27,000 660 340 7,000 35,000
Cost charged to Department A Total Materials Labor Overhead Total Adjustment for lost units Total Cost to be Acct for: 0% end. t ment B
Cost accounted as follows: Transferred to Department B: In Process 8/1 Cost Last Month Cost to complete Labor Overhead Adjusment for LU Started and Completed In Process 8/31 Materials Labor Overhead Factory Overhead Control
IP 8/1
Current
12,180.00 18,027.00 18,399.00 48,606.00
1,785.00 891.00 927.00 3,603.00
10,395.00 17,136.00 17,472.00 45,003.00
48,606.00
3,603.00
45,003.00
3,603.00 4,200 4,200 6,000 27,000
0.51000 0.52000 0.02654 1.35354
2,142.00 2,184.00 159.24
7,000 1,400 1,400
0.2970 0.5100 0.5200
2,079.00 714.00 728.00
340
1.327000
Department B
Actual
Materials
. In process Beginning Started this period Total Completed and Transferred In process Beginning Started this period Normal Loss Abnormal Loss In Process End
Units 7,000 33,000 40,000
WD 50%
EUP 3,500
7,000 24,000 495 1,005 7,500 40,000
50% 100% 0% 0% 50%
3,500 24,000 3,750 31,250
Cost charged to Department B Total Cost from Department A Cost Added this Dept. Materials Labor Overhead Total Cost Added Adjustment for loss units Total Cost to be Acct for:
IP 8/1
Current
52,553.82
7,920.00
44,633.82
38,885.00 15,598.00 17,871.00 72,354.00
3,885.00 1,890.00 2,226.00 8,001.00
35,000.00 13,708.00 15,645.00 64,353.00
124,907.82
15,921.00
108,986.82
Cost accounted as follows: Transferred to Finished Goods Inventory In Process 8/1 Cost Last Month Cost to complete Materials 3,500 Labor 2,800 Overhead 2,800 Received and Completed 24,000
1.120000 0.460000 0.525000 3.478794
3,920.00 1,288.00 1,470.00
In Process 8/31 Cost from Department A Materials Labor Overhead Adjustment for lost units
7,500 3,750 3,000 3,000 7,500
1.352540 1.1200 0.4600 0.5250 0.021254
10,144.05 4,200.00 1,380.00 1,575.00 159.41
Factory Overhead Control
1,005
1.352540
15,921.00
Adjustment for Lost Units Department A Deparment B
Cost of Normal Loss 660 1.3270
875.82
495
669.51
1.352540
Labor WD 30%
EUP -
70% 100% 100% 100% 20%
4,200 27,000 660 340 1,400 33,600
EUP
Unit Cost
35,000 33,600 33,600
8,088.24 36,545.58
0.297000 0.510000 0.520000 1.327000 0.026540 1.353540
44,633.82
3,521.00 451.18 48,606.00
Labor
WD 60%
40% 100% 0% 0% 40%
EUP
EUP -
2,800 24,000 3,000 29,800
Unit Cost
33,000
1.352540
31,250 29,800 29,800
1.120000 0.460000 0.525000 2.105000 0.021254 3.478794
22,599.00 83,491.06
106,090.06
17,458.46 1,359.30 124,907.82
RGU Adjusment 33,000.00 0.0265400 31,500.00
0.0212542
PPP Manufacturing Co. operates two consecutive departments (A and B). The following information pert production of the two departments for August 2013. Department A
Depart
Units
WD
Units
6,000
30%
7,000
Production Data In process 8/1 Started
35,000
Transferred out Normal Loss In Process 8/31
?
31,000
1,000
1,500
?
20%
7,500
Cost Data In Process 8/1 Transferred in Cost in this department Materials Labor Overhead
7,920.00 1,785.00 891.00
3,885.00 1,890.00
927.00
2,226.00
Transferred in Cost added in August Materials Labor Overhead Materials are added at Abnormal Loss occurs
10,395.00 17,136.00 17,472.00 Beginning End
35,000.00 13,708.00 15,645.00 50% beg., Sta
PPP Manufacturing Company Cost of Production Report For the month of August 2013
ins to the
ent B
WD 60%
40%
Qty. Schedule In process Beginning Started this period Total Completed and Transferred In process Beginning Started this period Abnormal Loss In process End
Actual Units 6,000 35,000 41,000 6,000 27,000 1,000 7,000 41,000
Materials WD EUP 100% 6,000
0% 100% 100% 100%
27,000 1,000 7,000 35,000
Cost charged to Department A Total Materials Labor Overhead Total Cost to be Acct for:
0% end. t
Cost accounted as follows: Transferred to Department B: In Process 8/1 Cost Last Month Cost to complete Labor Overhead Started and Completed In Process 8/31 Materials Labor Overhead Factory Overhead
12,180.00 18,027.00 18,399.00 48,606.00
IP 8/1
Current
1,785.00 891.00 927.00 3,603.00
10,395.00 17,136.00 17,472.00 45,003.00
3,603.00 4,200 4,200 27,000
0.5100 0.5200 1.3270
2,142.00 2,184.00
7,000 1,400 1,400 1,000
0.2970 0.5100 0.5200 1.327000
2,079.00 714.00 728.00
Department B
Qty. Schedule In process Beginning Started this period Total Completed and Transferred
Actual Units 7,000 33,000 40,000
Materials WD EUP 50% 3,500
In process Beginning Started this period Normal Loss In Process End
7,000 24,000 1,500 7,500 40,000
50% 100% 0% 50%
3,500 24,000 3,750 31,250
Cost charged to Department B Total Cost from Department A Cost Added this Dept. Materials Labor Overhead Total Cost Added Total Cost to be Acct for:
IP 8/1
Current
51,678.00
7,920.00
43,758.00
38,885.00 15,598.00 17,871.00 72,354.00 124,032.00
3,885.00 1,890.00 2,226.00 8,001.00 15,921.00
35,000.00 13,708.00 15,645.00 64,353.00 108,111.00
Cost accounted as follows: Transferred to Finished Goods Inventory In Process 8/1 Cost Last Month Cost to complete Materials 3,500 Labor 2,800 Overhead 2,800 Received and Completed 24,000
1.120000 0.460000 0.525000 3.431000
3,920.00 1,288.00 1,470.00
In Process 8/31 Cost from Department A Materials Labor Overhead Factory Overhead Control
7,500 3,750 3,000 3,000 1,500
1.326000 1.1200 0.4600 0.5250 1.3260
9,945.00 4,200.00 1,380.00 1,575.00
Adjustment for Lost Units Department A
Cost of Normal Loss 1,000 1.3270
1,327.00
1,500
1,989.00
Deparment B
15,921.00
1.326000
Labor WD 30%
EUP -
70% 100% 100% 20%
4,200 27,000 1,000 1,400 33,600
EUP
Unit Cost
35,000 33,600 33,600
7,929.00 35,829.00
0.297000 0.510000 0.520000 1.327000
43,758.00
3,521.00 1,327.00 48,606.00
Labor WD 60%
EUP -
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