AE 22: PROCESS COSTING – AVERAGE METHOD

CUTTING DEPARTMENT

Cost from January (Beginning WIP - February)

Materials 22,560.00
Labor 13,536.00
Overhead 28,952.00
WIP, beg. 65,048.00

Cost Incurred for the Current Month

Materials 69,944.00
Labor 82,416.00
Overhead 133,886.00
Total Costs 286,246.00

Cutting Department
Monthly Production Report
February 2022

Quantity
WIP, beg. 3,760
Started in Process 11,160
Transferred Out to Next Dept. 9,600
WIP, end. 5,320

Stage of Completion of WIP Beginning Ending

Materials 100% 100%
Labor 40% 45%
Overhead 55% 55%
Cutting Department
Equivalent Units of Production
February 2022

Materials
Transferred Out to Next Dept. 9,600.00
WIP, end. (5,320 x 100%) 5,320.00
EU for Materials 14,920.00
Labor
Transferred Out to Next Dept. 9,600.00
WIP, end. (5,320 x 45%) 2,394.00
EU for Labor 11,994.00
Overhead
Transferred Out to Next Dept. 9,600.00
WIP, end. (5,320 x 55%) 2,926.00
EU for OH 12,526.00

Cutting Department
Cost of Production Report
February 2022

Quantity Schedule Units

Quantity to be
accounted for:
WIP, beg. 3,760
Started in Process - February 11,160
Total units to be accounted for 14,920
Quantity accounted
for:
Transferred Out to Next Dept. 9,600
WIP, end. 5,320
Total units accounted for 14,920
Cost Schedule
Unit
Costs to be accounted for: Total Cost EU Costs
Materials WIP, beg. 22,560.00
Added in Feb. 69,944.00 14,920 6.20
Total Materials 92,504.00
Labor WIP, beg. 13,536.00
Added in Feb. 82,416.00 11,994 8.00
Total Labor 95,952.00
Overhead WIP, beg. 28,952.00
Added in Feb. 133,886.00 12,526 13.00
Total OH 162,838.00
Total costs to be accounted for 351,294.00 27.20
Costs accounted for:
Transferred Out to the Next Dept. 261,120.00 9,600 27.20
WIP, end.
Materials 32,984.00 5,320 6.20
Labor 19,152.00 2,394 8.00
Overhead 38,038.00 2,926 13.00
Total WIP 90,174.00
Total costs accounted for 351,294.00

ASSEMBLY DEPARTMENT

Cost from January

Cost Transferred In from Prior Dept. 28,130.00

Cost Incurred in this Dept.
Materials 1,455.00
Labor 5,529.00
Overhead 4,656.00
Total Costs from January 39,770.00

Cost Transferred In from Prior Dept. 261,120.00

Cost Incurred in this Dept.
Materials 23,128.00
Labor 70,638.00
Overhead 74,735.00
Total Costs in the Current Month 429,621.00
Assembly Department
Monthly Production Report
February 2022

Quantity
WIP, beg. 970
Transferred In - February 9,600
Transferred Out to Next Dept. 9,470
WIP, end. 1,100

Stage of Completion of WIP Beginning Ending

Transferred In Cost 100% 100%
Materials 60% 55%
Labor 60% 55%
Overhead 60% 55%

Assembly Department
Equivalent Units of Production
February 2022

Transferred In Costs from Prior Dept.

Transferred Out to Next Dept. 9,470
WIP, end. (1,100 x 100%) 1,100
EU for Transferred In Costs 10,570
Materials
Transferred Out to Next Dept. 9,470
WIP, end. (1,100 x 55%) 605
EU for Materials 10,075
Labor
Transferred Out to Next Dept. 9,470
WIP, end. (1,100 x 55%) 605
EU for Labor 10,075
Overhead
Transferred Out to Next Dept. 9,470
WIP, end. (1,100 x 55%) 605
EU for OH 10,075
Assembly Department
Cost of Production Report
February 2022

Quantity Schedule Units

Quantity to be accounted for:
WIP, beg. 970
Transferred In - February 9,600
Total units to be accounted for 10,570
Quantity accounted for:
Transferred Out to Next Dept. 9,470
WIP, end. 1,100
Total units accounted for 10,570

Total Unit
Cost Schedule Costs EU Costs
Costs to be accounted for:
Costs Transferred In fr. Prior Dept.
WIP, beg. 28,130.00
Transferred In - February 261,120.00 10,570 27.37
Total Transferred In Costs 289,250.00
Costs Incurred in this Dept.
Materials WIP, beg. 1,455.00
Added in Feb. 23,128.00 10,075 2.44
Total Materials 24,583.00
Labor WIP, beg. 5,529.00
Added in Feb. 70,638.00 10,075 7.56
Total Labor 76,167.00
Overhead WIP, beg. 4,656.00
Added in Feb. 74,735.00 10,075 7.88
Total OH 79,391.00
Total Costs in this Dept. 180,141.00 17.88

Total costs to be accounted for 469,391.00 45.25

 Costs accounted for:
Transferred Out to Next Dept. 428,471.90 9,470 45.25
WIP, end.
Costs from Prior Dept. 30,101.70 1,100 27.37
Costs Incurred in this Dept.
Materials 1,476.20 605 2.44
Labor 4,573.80 605 7.56
Overhead 4,767.40 605 7.88
Total WIP 40,919.10
Total costs accounted for 469,391.00

PACKAGING DEPARTMENT

Cost from January

Cost Transferred In from Prior Dept. 133,280.00

Cost Incurred in this Dept.

Materials 0.00

Labor 2,230.00

Overhead 1,020.00

Total Costs from January 136,530.00

Cost Transferred In from Prior Dept. 428,471.90

Cost Incurred in this Dept.

Materials 2,560.00

Labor 20,480.00

Overhead 16,885.00

Total Costs in the Current Month 468,396.90

Packaging Department

Monthly Production Report

February 2022

Quantity

WIP, beg. 2,720

Transferred In - February 9,470

Transferred Out to FG 6,370

WIP, end. 5,820

Stage of Completion of WIP Beginning Ending

Transferred In Cost 100% 100%

Materials 0% 0%

Labor 20% 20%

Overhead 15% 15%

Packaging Department
Equivalent Units of Production
February 2022

Transferred In Costs from Prior Dept.

Transferred Out to Next Dept. 6,370
WIP, end. (5,820 x 100%) 5,820
EU for Transferred In Costs 12,190
Materials
Transferred Out to Next Dept. 6,370
WIP, end. (5,820 x 0%) 0
EU for Materials 6,370
Labor
Transferred Out to Next Dept. 6,370
WIP, end. (5,820 x 20%) 1,164
EU for Labor 7,534
Overhead
Transferred Out to Next Dept. 6,370
WIP, end. (5,820 x 15%) 873
EU for OH 7,243
Packaging Department
Cost of Production Report
February 2022

Quantity Schedule Units

Quantity to be accounted for:
WIP, beg. 2,720
Transferred In - February 9,470
Total units to be accounted for 12,190
Quantity accounted for:
Transferred Out to Next Dept. 6,370
WIP, end. 5,820
Total units accounted for 12,190

Unit
Cost Schedule Total Costs EU Costs
Costs to be accounted for:
Costs Transferred In fr. Prior Dept.
WIP, beg. 133,280.00
Transferred In - February 428,471.90 12,190 46.08

Total Transferred In Costs 561,751.90

Costs Incurred in this Dept.
Materials WIP, beg. 0.00
Added in Feb. 2,560.00 6,370 0.40

Total Materials 2,560.00

Labor WIP, beg. 2,230.00
Added in Feb. 20,480.00 7,534 3.01

Total Labor 22,710.00

Overhead WIP, beg. 1,020.00
Added in Feb. 16,885.00 7,243 2.47

Total OH 17,905.00
Total Costs in this Dept. 43,175.00 5.89

Total costs to be accounted for 604,926.90 51.97

Costs accounted for:
Transferred Out to FG 331,057.00 6,370 51.97
WIP, end.
Costs from Prior Dept. 268,203.12 5,820 46.08
Costs Incurred in this Dept.
Materials 0.00 0 0.40
Labor 3,508.69 1,164 3.01
Overhead 2,158.09 873 2.47
Total WIP 273,869.90
Total costs accounted for 604,926.90
 AE 22: PROCESS COSTING – FIFO METHOD

CUTTING DEPARTMENT

Cost from January (Beginning WIP - Current Month)

Materials 22,560.00

Labor 13,536.00

Overhead 28,952.00

WIP, beg. 65,048.00

Cost Incurred for the Current Month

Materials 69,944.00

Labor 82,416.00

Overhead 133,886.00

Total Costs 286,246.00

Cutting
Department
Monthly Production Report
February 2022

Quantity
WIP, beg. 3,760
Started in Process 11,160
Transferred Out to Next Dept.
From WIP, beg. 3,760
Started and Completed - February 5,840
Total Transferred Out to Next Dept. 9,600
WIP, end. 5,320

Stage of Completion of WIP Beginning Ending

Materials 100% 100%
Labor 40% 45%
Overhead 55% 55%
Cutting Department
Equivalent Units of Production
February 2022

Materials
Transferred Out to Next Dept.
Completion of WIP, beg. (3,760 x 0%) 0.00
Started and Completed 5,840.00
WIP, end. (5,320 x 100%) 5,320.00
EU for Materials 11,160.00
Labor
Transferred Out to Next Dept.
Completion of WIP, beg. (3,760 x 60%) 2,256.00
Started and Completed 5,840.00
WIP, end. (5,320 x 45%) 2,128.00
EU for Labor 10,224.00
Overhead
Transferred Out to Next Dept.
Completion of WIP, beg. (3,760 x 45%) 1,692.00
Started and Completed 5,840.00
WIP, end. (5,320 x 55%) 2,926.00
EU for OH 10,458.00

Cutting Department
Cost of Production Report
February 2022

Quantity
Schedule Units
Quantity to be accounted for:
WIP, beg. 3,760
Started in Process - February 11,160
Total units to be accounted for 14,920
 Quantity accounted for:
Transferred Out to Next
Dept.
From WIP, beg. 3,760
Started and
Completed 5,840 9,600
WIP, end. 5,320
Total units accounted for 14,920

Cost Schedule
Unit
Costs to be accounted for: Total Cost EU Costs
WIP, beg. 65,048.00
Cost Incurred in February
Materials 69,944.00 11,160 6.27

Labor 82,416.00 10,224 8.06

Overhead 133,886.00 10,458 12.80

Total Cost in this Department 286,246.00 27.13

Total costs to be accounted for 351,294.00

Costs accounted for:
Transferred Out to the Next Dept.
From WIP, beg. 65,048.00
Cost Incurred in February
Materials 0.00 0 6.27
Labor 18,185.69 2,256 8.06
Overhead 21,661.42 1,692 12.80
Costs of Completed WIP, beg. 104,895.11 3,760 27.90
Started and Completed 158,443.13 5,840 27.13
Total Costs Transferred Out 263,338.24 9,600 27.43
WIP, end.
Materials 33,342.48 5,320 6.27
Labor 17,153.88 2,128 8.06
Overhead 37,459.40 2,926 12.80
Total WIP 87,955.76
Total costs accounted for 351,294.00
ASSEMBLY DEPARTMENT

Cost from January (Beginning WIP - Current Month)

Cost Transferred In fr. Prior Dept. 28,130.00
Cost in this Department
Materials 1,455.00
Labor 5,529.00
Overhead 4,656.00
WIP, beg. 39,770.00

Cost Incurred for the Current Month

Cost Transferred In fr. Prior Dept. 263,338.24
Cost in this Department
Materials 23,128.00
Labor 70,638.00
Overhead 74,735.00
Total Costs 431,839.24

Assembly Department
Monthly Production Report
February 2022

Quantity
WIP, beg. 970
Started in Process 9,600
Transferred Out to Next Dept.
From WIP, beg. 970
Started and Completed - February 8,500
Total Transferred Out to Next Dept. 9,470
WIP, end. 1,100

Stage of Completion of WIP Beginning Ending

Transferred In Cost 100% 100%
Materials 60% 55%
Labor 60% 55%
Overhead 60% 55%
Assembly Department
Equivalent Units of Production
February 2022

Transferred In Cost fr. Prior Dept.

Transferred Out to Next Dept.
Completion of WIP, beg. (970 x 0%) 0
Started and Completed 8,500
WIP, end. (1,100 x 100%) 1,100
EU for Transferred In Cost 9,600
Materials
Transferred Out to Next Dept.
Completion of WIP, beg. (970 x 40%) 388.00
Started and Completed 8,500.00
WIP, end. (1,100 x 55%) 605.00
EU for Materials 9,493.00
Labor
Transferred Out to Next Dept.
Completion of WIP, beg. (970 x 40%) 388.00
Started and Completed 8,500.00
WIP, end. (1,100 x 55%) 605.00
EU for Labor 9,493.00
Overhead
Transferred Out to Next Dept.
Completion of WIP, beg. (970 x 40%) 388.00
Started and Completed 8,500.00
WIP, end. (1,100 x 55%) 605.00
EU for OH 9,493.00
Assembly Department
Cost of Production Report
February 2022

Quantity Schedule Units

Quantity to be accounted for:
WIP, beg. 970
Started in Process - February 9,600
Total units to be accounted for 10,570
Quantity accounted for:
Transferred Out to Next Dept.
From WIP, beg. 970
Started and Completed 8,500 9,470
WIP, end. 1,100
Total units accounted for 10,570

Cost Schedule
Costs to be accounted for: Total Cost EU Unit Costs
WIP, beg. 39,770.00
Cost Incurred in February
Transferred In Cost fr. Prior Dept. 263,338.24 9,600 27.43

Materials 23,128.00 9,493 2.44

Labor 70,638.00 9,493 7.44

Overhead 74,735.00 9,493 7.87

Total Cost in this Department 168,501.00 17.75

Total Costs in February 431,839.24 45.18

Total costs to be accounted for 471,609.24

Costs accounted for:
Transferred Out to the Next Dept.
From WIP, beg. 39,770.00
Cost Incurred in February
Materials 945.29 388 2.44
Labor 2,887.13 388 7.44
Overhead 3,054.59 388 7.87
Costs of Completed WIP, beg. 46,657.01 970 48.10
 Started and Completed 384,039.29 8,500 45.18
Total Costs Transferred Out 430,696.30 9,470 45.48
WIP, end.
Transferred In Cost fr. Prior Dept. 30,174.17 1,100 27.43
Materials 1,473.97 605 2.44
Labor 4,501.84 605 7.44
Overhead 4,762.95 605 7.87
Total WIP 40,912.94
Total costs accounted for 471,609.24

PACKAGING DEPARTMENT

Cost from January (Beginning WIP - Current Month)

Cost Transferred In fr. Prior Dept. 133,280.00
Cost in this Department
Materials 0.00
Labor 2,230.00
Overhead 1,020.00
WIP, beg. 136,530.00

Cost Incurred for the Current Month

Cost Transferred In fr. Prior Dept. 430,696.30
Cost in this Department
Materials 2,560.00
Labor 20,480.00
Overhead 16,885.00
Total Costs 470,621.30
Packaging Department
Monthly Production
Report
February 2022

Quantity
WIP, beg. 2,720
Started in Process 9,470
Transferred Out to Next
Dept.
From WIP, beg. 2,720
Started and Completed -
February 3,650
Total Transferred Out to FG 6,370
WIP, end. 5,820

Stage of Completion of
WIP Beginning Ending
Transferred In Cost 100% 100%
Materials 0% 0%
Labor 20% 20%
Overhead 15% 15%
Packaging Department
Equivalent Units of Production
February 2022

Transferred In Cost fr. Prior Dept.

Transferred Out to Next Dept.
Completion of WIP, beg. (2,720 x 0%) 0
Started and Completed 3,650
WIP, end. (5,820 x 100%) 5,820
EU for Transferred In Cost 9,470
Materials
Transferred Out to Next Dept.
Completion of WIP, beg. (2,720 x 100%) 2,720.00
Started and Completed 3,650.00
WIP, end. (5,820 x 0%) 0.00
EU for Materials 6,370.00
Labor
Transferred Out to Next Dept.
Completion of WIP, beg. (2,720 x 80%) 2,176.00
Started and Completed 3,650.00
WIP, end. (5,820 x 20%) 1,164.00
EU for Labor 6,990.00
Overhead
Transferred Out to Next Dept.
Completion of WIP, beg. (2,720 x 85%) 2,312.00
Started and Completed 3,650.00
WIP, end. (5,820 x 15%) 873.00
EU for OH 6,835.00
Packaging Department
Cost of Production Report
February 2022

Quantity Schedule Units

Quantity to be accounted for:
WIP, beg. 2,720
Started in Process - February 9,470
Total units to be accounted for 12,190
Quantity accounted for:
Transferred Out to FG
From WIP, beg. 2,720
Started and Completed 3,650 6,370
WIP, end. 5,820
Total units accounted for 12,190

Cost Schedule
Unit
Costs to be accounted for: Total Cost EU Costs
WIP, beg. 136,530.00
Cost Incurred in February
Transferred In Cost fr. Prior Dept. 430,696.30 9,470 45.48

Materials 2,560.00 6,370 0.40

Labor 20,480.00 6,990 2.93

Overhead 16,885.00 6,835 2.47

Total Cost in this Department 39,925.00 5.80

Total Costs in February 470,621.30 51.28

Total costs to be accounted for 607,151.30

Costs accounted for:
Transferred Out to the FG
From WIP, beg. 136,530.00
Cost Incurred in February
Materials 1,093.12 2,720 0.40
Labor 6,375.46 2,176 2.93
Overhead 5,711.50 2,312 2.47
Costs of Completed WIP, beg. 149,710.09 2,720 55.04
 Started and Completed 187,180.14 3,650 51.28
Total Costs Transferred Out 336,890.23 6,370 52.89
WIP, end.
Transferred In Cost fr. Prior Dept. 264,694.03 5,820 45.48
Materials 0.00 0 0.40
Labor 3,410.40 1,164 2.93
Overhead 2,156.64 873 2.47
Total WIP 270,261.07
Total costs accounted for 607,151.30