Scribd Logo
Upload

Welcome to Scribd!

  • 173 views

    Process Costing Part 2.1

    Uploaded by

    Francis Matthew Jimenez
    The document summarizes costing information for the Assembling Department of Malakas Corporation for the month of June 2022. It provides beginning work in process inventory, units transferred in from another department at a cost, costs added during the month, units completed and transferred out, and ending work in process inventory. It also provides stage of completion percentages for the ending work in process inventory. The document requires computing equivalent units of production for the department and preparing a cost of production report.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Process Costing Part 2.1

    Uploaded by

    Francis Matthew Jimenez
    173 views3 pages
    The document summarizes costing information for the Assembling Department of Malakas Corporation for the month of June 2022. It provides beginning work in process inventory, units transferred in from another department at a cost, costs added during the month, units completed and transferred out, and ending work in process inventory. It also provides stage of completion percentages for the ending work in process inventory. The document requires computing equivalent units of production for the department and preparing a cost of production report.

    Original Description:

    Process costing problem set | cost accounting

    Original Title

    Process-Costing-Part-2.1

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document summarizes costing information for the Assembling Department of Malakas Corporation for the month of June 2022. It provides beginning work in process inventory, units transferred in from another department at a cost, costs added during the month, units completed and transferred out, and ending work in process inventory. It also provides stage of completion percentages for the ending work in process inventory. The document requires computing equivalent units of production for the department and preparing a cost of production report.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    173 views3 pages

    Process Costing Part 2.1

    Uploaded by

    Francis Matthew Jimenez
    The document summarizes costing information for the Assembling Department of Malakas Corporation for the month of June 2022. It provides beginning work in process inventory, units transferred in from another department at a cost, costs added during the month, units completed and transferred out, and ending work in process inventory. It also provides stage of completion percentages for the ending work in process inventory. The document requires computing equivalent units of production for the department and preparing a cost of production report.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Weighted Average Method – Process Costing

    Honey Corporation produces a single product. All materials are added at the beginning of production. On January 1, 2022,
    10,000 units of the products were in process in the Refining Department, the first department. During the month of
    January, 75,000 units were placed into production and 73,000 units were transferred out to the Toning Department, the
    second department. On January 31, 12,000 units were still in process in the Refining Department. The ending inventory is
    estimated to be complete as to materials and two-thirds complete as to labor and overhead. Cost data for the month of
    January are presented below:

    Materials Labor Overhead


    Beginning work in process inventory P64,000 P25,500 P14,400
    Added during January 616,000 266,080 134,640

    Required:
    1. Compute the equivalent units of production for the month of January 2022.
    2. Prepare the cost of production report for the Refining Department for the month of January 2022.
    Malakas Corporation is a manufacturing company that uses the average method of costing inventories. Malakas
    manufactures a single product that is produced in three separate departments: Molding Department, Assembling
    Department and Finishing Department. The following information was obtained from the Assembling Department for the
    month of June 2022.

    Work in process, inventory June 1 (2,000 units):


    Cost % of Completion
    Transferred in P32,000 100%
    Cost added:
    Direct materials P20,000 100%
    Direct labor P7,200 60%
    Overhead P5,500 50%

    During the month of June, 10,000 units were transferred in from the Molding Department at a cost of P160,000. P150,000
    of costs were added by the Assembling Department composed of the following:

    Direct materials P96,000


    Direct labor 36,000
    Applied overhead 18,000

    8,000 units were completed and transferred to the finishing department. As of June 30, 4,000 units were still in process.
    The stage of completion of work in process inventory at January 30, 2022 was as follows:

    Direct materials 90%


    Direct labor 70%
    Applied overhead 35%

    Required:
    1. Compute equivalent units of production for Assembling Department for the month of June 2022.
    2. Prepare a cost of production report for the Assembling Department for the month of June 2022.
    Lavandera Company manufactures a single product in two processing departments. The following information is available
    for the month of April 2022:

    Department 1 Department 2
    QUANTITIES
    Beginning work in process:
    Direct materials, 100% complete
    Conversion costs, 65% complete 5,000
    Direct materials, 100% complete
    Conversion costs, 40% complete 7,000
    Started in process during April 50,000
    Transferred out to Department 2 45,000
    Transferred out to Finished Goods 43,000
    Ending work in process:
    Direct materials, 100% complete
    Conversion costs, 75% complete 10,000
    Direct materials, 100% complete
    Conversion costs, 50% complete 9,000

    COST DATA
    Beginning work in process inventory:
    Transferred in costs P0 P28,000
    Cost added this department
    Direct materials P12,000 P14,800
    Direct labor P8,500 P9,200
    Applied overhead P10,300 P11,425
    Added during April:
    Direct materials P65,000 P45,000
    Direct labor P90,000 P70,000
    Applied overhead P55,000 P40,000

    Required: Assuming the company uses average costing method:

    1. Compute the equivalent units of production for each department.


    2. Prepare a cost of production report for both departments for the month of April 2022.

    You might also like