EXERCISES * OLOROSG, ING. Department 3 Cost of Production Report For March, 19— Quantity Schedule: Units received from: preceding depart Additional units put Into procs. Units transferred to stoteronm. Units still in process (all mater Cost Charged to the Department: Cost from preceding department: Transferred in during tiie month (20,000 units @ $1.50) Cost added by department: Factory overhead Total cost added.. Adjusted unit cost of units tr units). Total cost to be accounted for. ost Accounted fur as Follows: Transferred te storeroom (32,000 units x $1.42). Work in process—anding inventéry: 8000 40,000 Total Unit Lost Cost, ‘$30,000 a . Adjusted cost from préceding department (8,000 units x $. 75). $ 6,000 Materials (8,000 units x $.22) Labor (8,000 ruts x .50 x $25)... Factory overhead (8,000 units x .50 x $.20).. Total cost accounted { Additional Computations: é $45,440 1,760 1,000 800 _9,560 55,000 Equivalent production: Materias = 32,000 + 8,000 = 40,000 units Labor and factory overhead = 12,000 + (8,000 x 0%).= 96,000 units 2 (1) Quantty schedule: Uniis In process at beginning Units started in process. Dosanment A Deparinent 9 40,000 $8,000 48,500 44560 $01,000 189,006 12.000 $8,000 3 161,000 Scanned with CamScanner2. (Conel,) (2) Equivalent preduction: Ae eecovarson Mails: a Transterred hat = oon 000 i te oS baie ne finished this period. 38500 98, ‘Add beginning inventory (work this 200 ‘Add ending inventory. B99 23 Equivalent producti a7 500 es sane Sealing: Materiais Department 6 Matenals Conversion Units __ __Unts 29,000 &9.C09 10,000 10,009 79,000 3.505 Labor and Factory Units_ "_Quethead Units {8)/ Transferred out... "1 Add ending inventory {work this period}... _2,400 quivatont produetion..... 14,400 (bf - Transferred out... Compieted and on hari Add ending inventory (sori this period). Equivalent production... fe). Transferred out... ‘Add:ending inventory (work this. period), Equivalent production. (2). Fifo costing: 7 terials Unis (aY Transferred out, Less begihning Inventory {ai units). Started and finished this period... “5,400, oy ‘Add beginning inventory (werk this period’. . 4/400 ot ~ Add ending inventory (work this period) ov Equivalent production. m a i8s beginning ry t 4 Started and finished this per 100 re GErnpleed and on hand. - 700 * da: ending inventory {work this es Equivalent ton ee 4900 (¢) | Transforred out. Less beginning inventory (all unit i 29,000 Started and finished this period ” Foe yn Add beginning inventory (werk tis Ned encing even is perigg’ 1,000 sf Ecuivlent produc "O% 8 Parog),. 2509 42,000 Labor and Factory Overhead Ui Scanned with CamScannerx ve ( (o) Majérialg Conversion = (2) Fito costing: Materials” Conversion 5 “Un Units nits" _ Units Units . 12,000 12,000 12,000 12,900 12,100 ‘Add ending inventory (work this period) 6,000 3) 775 1,550 f23 = ps i Bm PSS “Add lost units (not related to ending inventory)... = = 4500 _1,500 -_= Equivalent production... : [go © 75,000 T4275 15,050 i503 Transferred out... 42,000 12,000 12,000 12,000 ex Less beginning inventory (all units). — — 11,000 11,000 & Started and finished this period... 72,000 12,000 7,000.” 7,000 7,500 ‘Add beginning inventory (work this per _ — 8250 9,625 = "Add ending inventory (work this period). 3,000 775, 1,550 £228 = 1,500 1 500 —_ 75,000 T1s25 73,675 70.550 “Add lost units (not related to ending inventory). Equivalent production. A uiweton’ 3 ™ % ” o\Y NO Scanned with CamScannerS. (1) Aveqage costing Materials — Corry } Una Wiig” Preven | coe aN 41% J Tranatorred out . i ww 1%) / Erte Peete: ue ti \ Lunia torn Praceting — Conary Dopatment Wty” ¢ . 200 “ah t os. , th 1% IHN HEMBOFY iy iit (2) FH costing, Matorials Corverap a ots 21% i) 19h 7 lw 7) Units fron Preceding Corvarsign ——Dopatiment__ ¥ 6. (1) Cement Ber oquvalent unt for conversion cost: 87,000 $16,400 + 38,200 = $48 The of the 2) The portion total way nding inventory attributable to transterred-n $20,400 + 40,000 « $.51; $51 x 9,000 Units In ending invortory = $1,530 8 Scanned with CamScannerWEST CORPORATION Cost of Production Report For November 1 Quantity Sched Units in process at beginning (all materials—75% labor and factory overhead).... Units slarted in process. 20,000 Units transferred to next department | Units still in process (all materials—33Vs% labor and factory | 9,000 | 0 20,000 Unit | Cost Charged to the Department: Last Cost added by department: | ‘Work in process—beginning inventor Material $ 22,800 ! Labor. 24,650 i Factory overhead. 21,860, we Cost added during period: Ak : Materials ($10,000 + $51,000 + (4,000 x $5.15)} 81,600 $ 5.80 Labor.... : pon ss.ie 103,350 00 | Factory overhead. 93,340 200 | Total cost to be accounted $347,600 $21.00 | Cost Accounted for as Follows: i Transferred out (15,000 x $21) sd $315,000 * Work in process—ending inventory : Fr Materials (3,000 x $5.80). $17,400 | Labor (3,000 x 331% X $6.00). 3, 1] Factory overhead (3,000 x 33%% x $7.20) 7200 _ 32,600 ge47g00 Total cost accounted for... tions Coed Mi terials = 15,000 + a 48,000 uni i nt yn; Materials = 19! D = 1) is Labor and factory overhead = 15,000 + (3,000 x 331%) = 16,000 units _ Is = $ 22,800 + $81,600 = $104,499; ~ $104,400 $5.80 por unt ~ Labor = $ 24,650+ $103,350 + $128,000; errs , $128,099 = $6.00 por unl Factory overhead = $ 21,860 + $93,340 = $115,200; $116,209 «$7.20 por unit Unit costs: Material Scanned with CamScanner =—IN PEPPER CORPORATIO! 5 ; sites, Department Cost of Production Report Quantity Schedule: - * % Units in process at beginnirig (all materials, 60%-labor, 50% 2000 overhead)... 0 12 Units received from Molding Department. 22,009 Units transferred to Finishing Department. ‘: Units still in process (90% materials, 70% labor, 35% over: a 4,000 12009 head)... Sr ae Gost Charged to the Department: Lost. Cost Cost from Molding Department: " 2 Work in processbeginning inventory. (2,000 unit § 22000 © seq Transferred in during June (10,000 units; “ v Total (12,000 units) $192,000 .. $16.06 Cost added by department: . Work in process—beginning inventory: Direct materia $ 20,000 Direct labor, 7,200 ; 5,500 96;000 $10.00 36,000' * 4.00 18,000 __ 2.50 $782,700 $16.50 Total cost to be ac $374,700 * $32.50 Cost Accounted for as Follows: + 7 ost Accounted for as Follows: Transferred t6 Finishing Department (8,000 x $32.50)... $260,000 Work in process—ending inventory: Gost from Molding Department (4,000 x $16.00), $64,000 Direct materials (4,000 x'.9 x $10.00). “36,000 Direct labor (4,000 x .7 x $4.00). 41/200 Factory overhead (4,000 x 35 x $2.50 3/500 114,700 Total cost accounted for., a BT Additional Computations: Unit cost trom Molding Department = $192,000 = ‘$16.00 sir una Equivalent production: Diratt materials + 5 he a Direct labor. = 8,900' + (4,000 0 769,00) 5800 units 0,800 -unit Factory overhead i= 8,000 + (4,000 x 35%)" pi Ye - — Scanned with CamScanner* g, (Concl.) Unit costs: Direct materials = s2o.c00 ++ $96,000 = $116,000; : 47805 = $10.00 por unit Direct labor = $7,200 + $36,000 « $43,200; . $43,200. i aap ~ $4.00 per unit Factory overhead = § 5,500 + $18,000 = $23,500; ‘9100 = $2:50_por unit 9. Transferred out... Less beginning inventory Started and finished this period, Add beginning inventory (work this period). ‘Add ending inventory (work this period). Equivalent production $86.908 = $16.50 April manufacturing cost per unit April work on beginning inventory (500 x $16.50) $40,250 _ STF 500 = $16.10 per unit Started and finished this period (3,000 X_ $16.50)..... $49,500 Y (1) Cost assigned to the ending Work in process inventory: “ ~ « 500 equivalent units x $16.50 = $8,250 (2) Cost assigned to the ending finished goods inventory: 1,400 units x $16.50 = $23, 100. ® (3) Inventory, April 1 Units completed during Apr Units availble. Inventory, April 3 Units sold during April Cost of goods sold: 1,200 units at $16.00 = $19,200 2,500 units at $16.10 = 40,250 units at'$16.50 =f 26,400 : S000 $85,850 : 61 Scanned with CamScanner en —STICS CORPORATION 10. DENTEX PLASTICS COT cont 3 Production Roport ey | Quantity Schedule: Units in process’ at beginning (60% materials a COSh)........ Units received from preceding department Units transferred to next department. Units still in process (75% materials ‘Units lost in process... ind conversion Cost Charged to the Department: Work in process—beginning inventory... Cost from preceding department: Transferred in during the month nits).. Cost added by department: Materials. Total cost to be accounted for Cost Accounted for as Follows: Transferred to next department— From beginning inventory: Inventory cost... $3,000 Materials added (1,000 x % x §.75).. ‘975 Labor added (1,000 x ¥2 x $1.23) as Factory overhead added (1,000x ¥z x $.92). 460 $ 4,450 oy current po ms ’ nits = started and finished (19,000 x x $7.38) “ 140,188 $144,638 Work in process—ending Inventory: Adjusted cost from preceding department [2,800 x ($4.32 + $.16)). Materials (2,800 x % x $75) Labor (2,800 x % x $1.23), Factory overhead (2,800 x % x $ Total cost accounted for..... . $ 12,544 "4 770,000 uh X $7.38 = $140,220. To. ito ou eduction fy comnputod as Yelena deetepancy, the cost transtored $163,272 - feaaso'r $16,038) = $4008 1 . 2 i Te ln . Scanned with CamScanner40. (Concl.) ‘Additional Computations: ' Equivalent production: Transferred out. 20,000 Less beginning inventory (all units 1,000 Started and finished this period: 79,000 Add beginning inventory (work this period).. ‘500 ‘Add ending inventory (work this pericd) 2,100 21,600 units it . ials - $16,200 ee Unit costs: Materials = “21600 = $.75 per unit Labor = Sge.s6e = $1.23 per unit Factory overhead = syo.ere = $.92 per unit Adjustment for lost units: $97,632 __ _ 54 4. $4.48 — $4.92 = Method No. 1— sp Bngi ang = $448; $448 - $4.92 = $.16 Method No. 2— 800 units x $4.32'= $3,456; $3488 — 5.16: Scanned with CamScanner Sk ee aaa eesPROBLEMS PROBLEM 5-1 in. . FERRY, INC. i * Cost:of Production Resort For January, ~ ieee Department No. J.» - Rapartinant No, 2 Quantity Sched Put into prodiction. Received from Department 1 Purchased..... Transferred to Departinent 2.. Transferred to finished goods. 180,000 Still in process, . 45,000" Lost in process, ‘75,000 Cost Charged to the Department: Total Cost Transferred in during month. Cost added by departm m Materials... $ 90,000 . Labor.. 39,000 7,800 $136,800 sea “otal cust added. Adjusted unit cost for quantity increase. Total cost to be accounted for. Cost Accounted for as, Follows: Transterred to Department 2. Transfered to finished goods. Work in process: + Adjusted cost from Department 1 Materials... Labor. Factory overhead ‘otal cost accounted for. " All-materials, ¥s labor and factory overhead, ? Ali materials, 40% labor and factory overhead. 7 $115,200 ; 3 : 225.000 units ~ $512 adjusted unt cost fr quant i Scanned with CamScannerPROBLEM 5.2 ADEPT COMPANY Grading Dopartmont . Cost of Production Fleport a For November, 19— Qu Units started in process ang transfeired to next departriian Sost Charged to the Depariment: Cost added by department id factory overhead. Tetal cost to be accounted for. Cost Accounted for ! jE Trens‘erred to next cepartment~- From current production: : Units started and fini Tetai cast accounted! for. 428,800 x $12), Additional Computations: Equivalent production: Transferred outs. Scanned with CamScanner* 4 00 oy © paonuem 62, Concluded ADEPT COMPANY saturating Department wo x Cost of Production Repo’ . ead For November, 19— Units Water added (28,800 x 50%).. Units transferred to finished goods.. Units stil in process (60% labor and factory Cost Charged ta the Department: ‘Work in process—beginning inventory... Cost from preceding department: . Transterreo in during the month (28,800 units). Cost added by department: Labor end factory overhead... unit cost of units transfer Total cost to be =ccounted for... Cost Accounted for as Follows: $17,600 1,600 $ 19,200 412,000 $431,200 From current pt : Units started and finished (41,200 x( Work in process—ending invertory; ‘Adjusted cost from preceding depariment Labor and factory overhead (2,000 x 50% Total cost accounted f0F.... Additional Computations: * Equivalent production Transferred out... Less beginning inventory (all units). 42,800, Started and finished this period... 1,600. ‘Add beginning inventory (work this poriod) 7,200, ‘Add ehding inventory (work this period). 00 . - 4,000: Unit cost: Labor and factory overhead = $38,000 Pe ‘000 units = $2 per. unit : Adjustment for additional units: 5 : 6 Scanned with CamScannerWA ov PROBLEM 5-3. FT, eat g is sbMguToN COMPANY v post ioe ager Cost of ean Repon Meg. For December, 19— we Schedul Units in process at beginning-(30% complete) Units received from Department Units transferred to Department Units still in process (60% compl 4,500 Normal spalege (less than 5% of inspected units 500 35,000 : Total = Unit Gost Charged to the Department: Cost _Cost_ ‘Cost from Department 1: * Work in process—beginning inventory. Transferred in during this period.. Total. (3,000 units) § 1,000 $5.333 (22,900 units) 180,000 5. (35,000 2,000 unis) $196,000 $5.60 Cost added by department: - Work in process—beginning inventory: Materials, Conversion. Costs added during period Total cost to be accounted for Cost Accounted for as Follows; £9. s ranstoned to Deparment 3{¢ 9 Transferred to Department [027% p+ ees Work in process—ending inventory Deparment | ost 4.500 = $5.60). Conversign (4,500 x 60% $3.00}. inted for 67 ae Scanned with CamSeannerPROBLEM 'g-3, Concluded Additional Computations: . “Unit cost from Department 1 = 219009 = $5,60 por unit , Equivalent production: Materials = 30,000 units ; . Conversion = 30,000 + (4,500 x 60%) + (g00'* 80%) Unk costs: Materiats = $12:098 = §.40 per unit 93,100 units $99,300 .. $3.00 per unit Conversion = $2,600 + $96,700 = $99,300; "33,100 Transferred to Department 3: ‘Good units (30,000 x $9).. Normal spoilage cost, all ‘applicable to units transfert 500 x $5.60. 400 x $3.00. (2) Work in Process—Department 3. Work in Process—Departmer Scanned with CamScannertata PROBLEM 5-4 SPORIFIG COMPANY ‘ Cost of Production Report For February, 19— ‘ Corhpounding’and Mixing Packaging Quantity Schedule: _—Department__ __Department_ Units in process at beginning... 4,000 “600 Units started in process. 15,000 16,000 Units received from preceding departma * 42500 13, Units transferred to next department, 12,500 oe Units transferred to finished goods storeroom.. . 11,500 Units stil in process. 3,000 11500 143,000 Units lost at end of process... 590 16,000 Total Unit” "Total «Unit Cost Charged to the Departme “Cost . Cost Cost _Cost Cost from preceding department: Work in process—beginning inventory. “$650 $1.30 Transferred in during this period. “26,000 _2.08 Total... $26,650 $2.05 Cost added by department: Work in process—beginning irivento Materials. $ 980, Labor. 230°. $ 175. 400 100 . Factory overheat Cost added during period: 15020 $1.00 5,570 es 6,700. $ 55 00 2S Cost Accounted for as Follows: thes Transferred to next department [12,500 units x ($2.00 + $.08)}. Scanned with CamScannerPROBLEM 5-4, Concluded Additional Computations—Mixing Departmant: : : Equivaient pata Materials =" 12,500 + 9,000 + a lost vate 16,000 u Labor and factory overhead = 12,500 + 5— + 500 lost units ~ 14,500 units $16,000 _ , = Te00 $1.00 per unit Unt costs: Materials = $980 + $15,020 = $16,000; 0 Labor = $230 + $5570 = $5,800; $5855 = $.40 per unit 8,700 _ ’ Factory overead = $490 + $6,200, $8,700; S075 = $.60 par unt Lostuniteast = $2.00 x 500 nits = §1,000; $1,000 + 12,500 units = $.08 pér unt te be added to $2.00 to make the transfer cost $2.08. Additional Computations—Compounding and Packaging Department: Equivalent production: Labor and factory overhead = 11,500 + 1,500 (%) = 12,500 units Unit costs: Preceding department = $650 + $26,000 = $26,650; $28,650 ~ soos Labor = $175 + 5 . $6,875 _ 1 = $178 + $6,700 = $6,075; S88 = $.65 Factory overhead = $100 + $4,275 = $4,a75; $4878 - g.5 : : , 70 | Scanned with CamScannere > a | wes EN PHOBLEM 5.5 rg * Vp Units Unit (Square Feot) Cost _ Amount Inventory, June 1.. 390,000 $ 76,000 New units 4,210,000 244,000 Units avab 1,600,000 $.20 $320,000 Inventory, June 30 200,000 20 __ 40,000 aper used... [a0u,000 Paper user 7,400,000 20 $240,000 (2 Matoria's Dept, Finished Goods Dept. ; Paper Work in Process ~ Completed ABoxes) Inventery, June 300,000 250,000 * New units 5,600,000" 6,009,060 6,400,000 6,260,000 9 (30,000) Folding spoilage. (70,090) lnventory, June 30. . (390,000) 50,000) = Transierted out. 5,080,000 200,000 « “The 1,400,000 units transferred out of the Materials Oepartment are rectassilied on a 410-1 basis 10 5,600,000 units in the Box Department, Box Department a M Conversion Transferred out 6,000,000 & Less inventory, - 800,000 200,000" 5,200,000 ao ‘Add inventory, June 1 (work this period} Add inventory, June 30. Equivalent productior as eo aro Conversion Gost: __: Total it Unit > Unit Cost Amount — Units Gost» “Amount Cost. ($220,000) 5,750.00 $226,000 - 20,000 150,000 $.04 $246,000 $.09 (4) = ~ Box Departmen: ——-— Materials + Unit Unit ‘al Units Cost Amount Vnils Cast. Amount Cost 6,300,000 $,65 $315,000 6,150,C00 $.04. $248,000 $561,000 ‘300,000 .05 _ 15,000 150,000 .04 6,000 _ 21,000 Totar' units... Inventory, June 90. _ 300,000 .05 _ 15,000 __150 0 2 Completed unis... $000,000 :05 $300,000 §{000.000 oa ¢{an,c00 $846,600 n Scanned with CamScanner 460,000 (50%) 300,00 (at) _ 160,000 (50%) wae, 060 a 8 60 —- Gonversion Cost__ . 5PROBLEM 5-5, Concluded ie nt 6 Finished Goods Deel od - (6) nits Unit Cost_ Mount Inventory, Juno 1. 540, Units from Box Department 08928 Total availabie... 6,250,009 $.088 $558.00 ay Units -_Unit Cost Amount $.08928 $558,009 08928 > 4.484 .08928 $553,536 S888 PROBLEM 5-6 a) ; Labor and Materials” Fact verhe: Units completed during ye ,000 900,000 Ending inventory. S000 - _ 180.000 Equivalent units of production 200,000 7,050,000 2) é Bisee poe], EI Total Materials Lalor Overhead Beginning work in process. Added costs. Total... Equivalent units of produc ._ (requirement (1)} Unit production costs. @) Scanned with CamScannerPROBLEM 5-7 aS ___ DETERRA, INC. Finishing Department—Filo Costing Cost of Production Report For October, 19— Quantity’ Schedule: Gallons in process at beginning (% conversion cost Gallons received from preceding department... Gallons transferred to storage.. Gallons still in process (Ye conversion cost Gallons lost in process... Cost Charged to the Department: Work in process inventory, Oct. 1 Transferred in during Octobe Cust added in this departmer Materials. Labor... Factory overhead. Total cost added. Adjustment for, lost units. Total cost to be accounted for. Cost Accounted for as Follows: Transferred to storage— From beginning inventory. Labor (2,500 x $5)... Factory overhead (2,500 x $4) -From:turrent production: Units started and finished (25,090 x $15)... Work in process inventory, “Adjusted cost from preceding department {10,000 x ($3.50 + $.50)}. 375,000 $538,000. $ 40,000 Materials (10,000 x $2). 20,000 Labor (10,000 x..5 x $ 25,000 Factory overhead (10,000 x .5 x 20,000 $1 E Total cost accounted for... . Scanned with CamScannerPROBLEM §-7, Continued Labor and terials Adaittonal Computations: Materials Equivalent producti Less Poghning inventory (lu units). 10,000 . en and finished this pet "25,000, fe: Bedoring inventory rvork this patiod) ‘of 10,000 corwverted). es laventory (9d). 10,000 5,900 (4 01 10,600 conveneAomw Fe urits 321800 unite 35,000 - Adjustment for lost units: 140,000 Cost transterred in during October $149,008 = $4.00. 40, lent units — 5,000 lost units 35,000 i $140,000 Cost transterred in duritia Qstober _ ch ago 40,090 Units tr ted in ‘during October ~ rereeln $0.5C Scanned with CamScannerPROBLEM 6-7, Continued \ @ DETERRA, INC, Hi Finishing Departmont—Averago Costing | Cost of Production Roport l For Octobor, 19— } Quantity Schedule: Gallons in process at beginning (% conversion COSt).sswseee 10,000 Gallons received from preceding department. . 40,009 $0,090 | Gallons transferred to storage... 35,000 | Gallons still in process (¥2 conversion cost) 10,000 ii Gallons lost in process... : 5,000 50,000 4 Cost Charged to the Department: Total_cost. Unit cost Cost from preceding department: f Work in process—beginning inventory. . $ 38,000 $3,800 Transferred in during October. 140,000 3.500 } - Total... 33.560 ! Cost added by department: } Work in process—-beginning inventory: f 1 Materials. 21,5001 4 * Factory overhead. Cost added during period: Material Lab0F wey Factory overhead. Total cost added. Adjustment for lost unit Total cost to be acco Cost Accounted for as Follo Transferred to storage... Work in process—ending inventory: Adjusted cost from preceding department [10.000 x ($3.560 + $.396)]. 39,560 Materials (10,000 x $2.033) 20,330 Labor (10,000 x .5 x $5.038) 25,190 Factory overhead (10,000 x .5 x $4.300). 21,500 _106,580 Total cost accounted for. - 15.327 per unit = $536,445. To avoid a decimai discrepancy, the cost Seite storage fs computed as follows: $643,000 - $106,580 = $f 6,420. 15 Scanned with CamScannerPROBLEM 5-7, Concluded ' Labor and Fact Additional Computations: Materials Factory. Overheag Equivalent producto Transferred out... a 38,000 Ending inventory (¥2 of 10,000 converted) 10,000 45,000 units 40,000 units Unit costs: Materials = $21,500 + $70,000 = $91,500; $91,500 _ unit ag 7 82.033 Per Labor = $39,000 + $162,500 = $201,500; $201,500 Sra a00 95-038 Per unit Factory overhead = $42,000 + $130,000 =, $172,000; $172,000 _ , =70,000 ~ $4,300 per unit Adjustment x’ lost units: Method No, $178,000 £90 — $3.956; $3,956 - $3.560 = $.996 per unit Method No.'3--5; OO unts x $3.560 = $17,800; 17, i > NABIE $998 pe unit i Scanned with CamScannerPROBLEM 5-8 () l Matorlals. ~~ Conversion Units, —Units__ Transterred out. sivas 19,000 19,000 Less beginning inventory (all units) 3, Started and finished this period. Add beginning inventory (work this p Add ending inventory, Equivalent productior (2) (@) Work in process—beginnin invent . Cost added by depatiment? Tap Materials’ Total cost to be accounted for.. as "Miracle Mix: Beginning inventory. From December 12 pi \ Total December usage. | > Bypro-—from beginning inventOry...n.-.0 | Cost of materials added during “ | December. = $92,000 *Fabricating Departrnent factory overhead... : $132,000 Allocation of service departments’ factory overhead: . Bulking maintenant 30,000 | ‘imekeeping ai rsonnel . , or ete 19,500. _ 66,000 | i! $198,000 ' (b) Materials ($92,060 +- 23,000), $ 4 per unit ; Direct labor ($154,000 + 22,000) 7 per unit } Factory overhead ($198,000 + 22,000). 9 per unit if Total unit cost..... $20 per unit 'j ij Scanned with CamScannerPROBLEM 5-0, Cone! {e)_Transtorrod to Finishing Department From beginning inventory: mbOC Vn 4,000 wera ected (3,000 * 15 x $4); 10,500 Direct labor atkted (3,000 x ¥2 x $7)ongay 13,500 . $ 80,000 Factory overhead added (3,000 x Yr From current production: a its started and finished (16,000 x $ ) Tol ‘cost of units transferred to Finishing Dopartment Work in process inventory, Decomber au 24,000 Materials (6,000 x $4). aieen Direct labor on + x ae Factory over head (6,( x Total cost of work in process inventor $96,000 Materials Conversion ints ,__Units 19,000 4,500 23,500 ‘The total Fabricating Department cost to be accounted for is the same as shown in answer (2) (2). Unit costs for materials, labor, and factory overhead: Materials: $13,000 + $92,000 = $105,000; $105,000 eo = $ 4.20 per unit $17,500 + $154,000 = \ ois Labor: 8 $154,000 = $171,500; $171,500 = 7,30 per unit Factory overhead: $21 500+ $198,000= $219,500; $219,500 9.34 per unit $20.84 per unit Cost of units transferred to Finishing Department: 19,000 « $20.84 per unit = $395,960, ° tee Fat Depa arg lis a if fending work " Process inventory cost (see below) Totel unit cost... Cost of the ending work in process in fiork in process Inventory, December sin” t*@ Fabricating Department: Materials (6,000 x $4.20)... Laber (6,000 x % x $7.3 $ 25,200 Factory overiead (6,000 x Scanned with CamScanner_ PROBLEM 5-9 1 » sixing Deparment: Materials Units Units completed and transferred. Units still in procass. Equivatent procuction. Compounding Department: Units From, Preceding % Department \ Units completed and transferred. 46,000 Units still in process. 6,000 Equivalent proouction. 52,000. Packaging Department: - Units completed ang transferre Less units in process at begint 2,000. Started and completed this period. 39,600 ‘Add units in process at beginning (work this period), 1,000 ‘Add units silin process (work this i 400 41,000 & ise Scanned with CamScanner Labor and Factury Overhead Units 50,000 6,000 56,000 ma Labor and Factory -Overhea 46,000 tse Labor and Factory Overhead Units *41.590 2,400@) RELAXO COMPANY -Cost of Production Report For September, 19— Compounding Packaging — : Total Unit Total ‘Unit Total Unit Cost. = _Cost. _Cost Costs Cost Cost cr to the i. ; $ 3,290 - $2,260 - $1130 » $0,000 _1,000 $66,920 $1.45500 & $52,260 — §1.005 $ 350 2200 $ 50 = = 20 13,400 $ 275 30 8.550 75 $i00 = $22,500 $450 500 $s. 59,000 1.00 374,760 1.455, 376,780 1.75357 $59,000 ‘$1.75857 “$66,930 + 42,000 = $1.59357; $1.59357 — $1.45500 = § -13857 Scanned with CamScanner \ponujuoD 69 Wa1a0Ud“Transferred to next dapartment of finished goods. From béginning inventory: * finished... Packaging Mixing = ___ Compounding” $50,000 $66,930 $ 3,290 30 70 —— $ 3,450 69,441 $72,891 + $6,030" S$ 3,825 $ 6,006 — 12 4,200 1,200 28 1,800 © __9,000 700 7,839 24 3,889 $59,000 » $74,760, $28,780 eR Scanned with CamScanner Pepniouod 6-5 Wa TaOud