The Wizarding Company uses the Process Cost System and the Average Costing Method. Materials and Conversion costs are added evenly throughout the process. The following production data are for the Mixing Dept for the month of June (Round unit costs to two decimal places): Production Costs Work in process, June 1st: Direct Materials: 100% complete $3,800 Conversion Costs: 70% complete 4,600 $8,400 Costs incurred during production in June: Direct Materials $17,000 Conversion Costs 20,000 37,000 Total Costs for June $45,400 Production Report Units Work in process, June 1st 200 Units started in production during June Units completed & transferred out (DM 100%; CC 100%) 5,000 4,800 Work in process, June 30th (DM 100%; CC 30%) 400 1: Prepare a Production Cost Report using the Average Cost Method.
The Wizarding Company uses the Process Cost System and the Average Costing Method. Materials and Conversion costs are added evenly throughout the process. The following production data are for the Mixing Dept for the month of June (Round unit costs to two decimal places): Production Costs Work in process, June 1st: Direct Materials: 100% complete $3,800 Conversion Costs: 70% complete 4,600 $8,400 Costs incurred during production in June: Direct Materials $17,000 Conversion Costs 20,000 37,000 Total Costs for June $45,400 Production Report Units Work in process, June 1st 200 Units started in production during June Units completed & transferred out (DM 100%; CC 100%) 5,000 4,800 Work in process, June 30th (DM 100%; CC 30%) 400 1: Prepare a Production Cost Report using the Average Cost Method.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter5: Process Cost Accounting—general Procedures
Section: Chapter Questions
Problem 2P: Dublin Brewing Co. uses the process cost system. The following data, taken from the organizations...
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Question
Transcribed Image Text:Production Cost Report
Equivalent Units
Quantities
Physical Units
Direct Materials Conversion Costs
Units to be accounted for: (Step 1)
(Step 1)
Work in process, June 1st
Started into production
Total units
Equivalent Units (Step 2)
Direct Materials Conversion Costs
Units accounted for: (Step 2)
Completed & transferred out (DM 100%; CC 100%)
Work in process, June 30th (DM 100%; CC 30%)
Total units
Total Production
Costs
Costs
Direct Materials Conversion Costs
(Step 3)
Total Costs incurred to date
Divide by equivalent units
Costs per unit
Costs to be accounted for
Work in process, June 1st
Started into production
Total Costs
Cost Reconciliation Schedule
(Step 4)
Costs accounted for:
Completed and transferred out (DM 100%; CC 100%)
Work in process, June 30th:
Direct Materials (100%)
Conversion Costs (30%)
Total Costs
Transcribed Image Text:(?) This spreadsheet has missing fonts.
Ch16 Case Study Assignment - Part 3
Production Cost Report Problem
The Wizarding Company uses the Process Cost System and the Average Costing Method.
Materials and Conversion costs are added evenly throughout the process. The following
production data are for the Mixing Dept for the month of June (Round unit costs to two
decimal places):
Production Costs
Work in process, June 1st:
Direct Materials: 100% complete
$3,800
4,600
$8,400
Conversion Costs: 70% complete
Costs incurred during production in June:
Direct Materials
$17,000
Conversion Costs
20,000
37,000
Total Costs for June
$45,400
Production Report
Units
Work in process, June 1st
200
5,000
Units started in production during June
Units completed & transferred out (DM 100%; CC 100%)
4,800
Work in process, June 30th (DM 100%; CC 30%)
400
1: Prepare a Production Cost Report using the Average Cost Method.
Production Cost Report
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