CHAPTER 18 Process Cost Systems
Prob. 18–1A (FIN MAN); Prob. 3–1A (MAN) (Concluded)
2.
Work in Work in
Process— Process— Finished
Materials Spinning Dept. Tufting Dept. Goods
Balance, October 1…
…
$ 4,800 $ 1,500 $ 2,300 $ 5,600
3.
Balance, October 1…
…
…
Factory Overhead— Factory Overhead—
Spinning Dept. Tufting Dept.
$0 $0
18-41
…
CHAPTER 18 Process Cost Systems
Prob. 18–2A (FIN MAN); Prob. 3–2A (MAN)
1.
(30% completed) 1,500 01,050
Started and completed in March 20,200 20,200 20,200
Transferred to Packing Department in
March 21,700 20,200 21,250
FRESH MOUTAIN COFFEE COMPANY
Cost of Production Report—Roasting Department
For the Month Ended March 31, 2016
Equivalent Units
2
18-42
CHAPTER 18 Process Cost Systems
Prob. 18–2A (FIN MAN); Prob. 3–2A (MAN) (Continued)
Direct
COSTS Materials Conversion Total
Costs per equivalent unit:
Total costs accounted for by the
Roasting Department $110,792
Cost allocated to completed and
partially completed units:
Inventory in process, March 31 8,190 672 8,862
Total costs assigned by the Roasting
Department $110,792
Costs transferred to Packing Department: $101,930
Work in process, March 31: 2,100 units at a cost of $8,862
1
$11,900 + $5,772
2
Costs
67
18-43
CHAPTER 18 Process Cost Systems
Prob. 18–2A (FIN MAN); Prob. 3–2A (MAN) (Concluded)
2. Direct materials cost increased from $3.80 in February to $3.90 in March.
Conversion cost decreased from $1.00 in February to $0.80 in March.
Computations:
Direct materials: $3.80 ($5,700 ÷ 1,500 units)
Conversion: $1.00; determined as follows:
18-44
CHAPTER 18 Process Cost Systems
Prob. 18–3A (FIN MAN); Prob. 3–3A (MAN)
1.
Whole Direct
UNITS Units Materials Conversion
Units charged to production:
Inventory in process, July 1 900
(3/5 completed) 900 0360
Started and completed in July 14,600 14,600 14,600
Transferred to Packaging Department
in July 15,500 14,600 14,960
WHITE DIAMOND FLOUR COMPANY
Cost of Production Report—Sifting Department
For the Month Ended July 31, 2016
Equivalent Units
1
2
18-45
CHAPTER 18 Process Cost Systems
Prob. 18–3A (FIN MAN); Prob. 3–3A (MAN) (Continued)
Direct
COSTS Materials Conversion Total
Costs per equivalent unit:
Total costs for July in Sifting
Costs assigned to production:
Inventory in process, July 1 $ 2,061
Costs incurred in July 40,883
Total costs accounted for by the
Sifting Department $42,944
Cost allocated to completed and
partially completed units:
Inventory in process, July 31 2,365 396 2,761
Total costs assigned by the Sifting
Department $42,944
Costs
2
67
18-46
CHAPTER 18 Process Cost Systems
Prob. 18–3A (FIN MAN); Prob. 3–3A (MAN) (Concluded)
2. Work in Process—Sifting Department 33,755
3. Direct materials: $0.10 increase ($2.15 – 2.05)
Conversion: $0.05 increase ($0.45 – 0.40)
4. The cost of production report may be used as the basis for allocating product
costs between Work in Process and Transferred-Out (or Finished) Goods. The
18-47
CHAPTER 18 Process Cost Systems
Prob. 18–4A (FIN MAN); Prob. 3–4A (MAN)
1. and 2.
Item Dr. Cr. Dr. Cr.
Apr. 1 Bal., 800 units, 30% completed 3,860
30 Cooking Dept., 7,800 units at $4.40 34,320 38,180
30 Direct labor 8,562 46,742
30 Factory overhead 6,387 53,129
30 Finished goods* 49,818 3,311
30 Bal., 550 units, 90% completed 3,311
Date
Balance
Work in Process—Filling
18-48
CHAPTER 18 Process Cost Systems
Prob. 18–4A (FIN MAN); Prob. 3–4A (MAN) (Continued)
Whole Direct
UNITS Units Materials Conversion
(a) (a)
Units charged to production:
Inventory in process, April 1 800
Units to be assigned cost:
Inventory in process, April 1
(30% completed) 800 0560
Started and completed in April 7,250 7,250 7,250
HEARTY SOUP CO.
Cost of Production Report—Filling Department
For the Month Ended April 30, 2016
Equivalent Units
1
2
18-49
CHAPTER 18 Process Cost Systems
Prob. 18–4A (FIN MAN); Prob. 3–4A (MAN) (Continued)
Direct
COSTS Materials Conversion Total
Costs per equivalent unit:
Costs assigned to production:
Inventory in process, April 1 $ 3,860
Costs incurred in April 49,269
Total costs accounted for by the
Filling Department $53,129
Cost allocated to completed and
partially completed units:
in April (c) $49,818
Inventory in process, April 30 (d) 2,420 891 3,311
Total costs assigned by the Fillng
Department $53,129
Costs
2
67
18-50
CHAPTER 18 Process Cost Systems
Prob. 18–4A (FIN MAN); Prob. 3–4A (MAN) (Continued)
2.
Whole Direct
UNITS Units Materials Conversion
(a) (a)
Units charged to production:
Units to be assigned cost:
Inventory in process, May 1
(90% completed) 550 055
Started and completed in May 9,300 9,300 9,300
Transferred to finished goods in
HEARTY SOUP CO.
Cost of Production Report—Filling Department
For the Month Ended May 31, 2016
Equivalent Units
1
2
18-51
CHAPTER 18 Process Cost Systems
Prob. 18–4A (FIN MAN); Prob. 3–4A (MAN) (Concluded)
Direct
Costs incurred in May 63,080
Total costs accounted for by the
Filling Department $66,391
Cost allocated to completed and
partially completed units:
Inventory in process, May 31 (d) 1,380 210 1,590
Total costs assigned by the Filling
Department $66,391
1
$12,042 + $6,878
2
$44,160 + $12,042 + $6,878
3. The cost per equivalent unit for direct materials increased from $4.30 in March
to $4.40 in April to $4.60 in May. Similarly, the cost per equivalent unit for
Costs
67
18-52
CHAPTER 18 Process Cost Systems
Prob. 18–5A (FIN MAN); Prob. 3–5A (MAN)
Whole Equivalent Units
UNITS Units of Production
Units to account for during production:
Units to be assigned cost:
Transferred to Packing Department in
1
10,500 units + 210,400 units – 208,900 units
2
25% units × 12,000 units
COSTS
Unit costs:
Total costs for December in Roasting Department $572,130
Costs charged to production:
Inventory in process, December 1 $ 21,000
Costs incurred in December 551,130
Total costs accounted for by the Roasting Department $572,130
Costs allocated to completed and partially completed units:
Transferred to Packing Department in December
SUNRISE COFFEE COMPANY
Cost of Production Report—Roasting Department
For the Month Ended December 31, 2016
*
18-53
CHAPTER 18 Process Cost Systems
Prob. 18–1B (FIN MAN); Prob. 3–1B (MAN)
1. a. Materials 149,800
Accounts Payable 149,800
b. Work in Process—Making Department 105,700
Work in Process—Packing Department 31,300
Factory Overhead—Making Department 4,980
Factory Overhead—Packing Department 1,530
Materials 143,510
d. Factory Overhead—Making Department 10,700
Factory Overhead—Packing Department 7,900
Accumulated Depreciation 18,600
e. Factory Overhead—Making Department 2,000
Factory Overhead—Packing Department 1,500
Prepaid Insurance 3,500
18-54
CHAPTER 18 Process Cost Systems
Prob. 18–1B (FIN MAN); Prob. 3–1B (MAN) (Concluded)
2.
Work in Work in
Process— Process— Finished
Materials Making Dept. Packing Dept. Goods
Balance, July 1……
…
$ 5,100 $ 6,790 $ 7,350 $ 13,500
3.
Balance, July 1……
…
Factory Overhead— Factory Overhead—
Making Dept. Packing Dept.
$0 $0
18-55
CHAPTER 18 Process Cost Systems
Prob. 18–2B (FIN MAN); Prob. 3–2B (MAN)
1.
Whole Direct
UNITS Units Materials Conversion
Units charged to production:
Inventory in process, October 1 2,300
(3/5 completed) 2,300 0920
Started and completed in October 23,400 23,400 23,400
Transferred to Molding Department in
October 25,700 23,400 24,320
BAVARIAN CHOCOLATE COMPANY
Cost of Production Report—Blending Department
For the Month Ended October 31, 2016
Equivalent Units
1
2
18-56
CHAPTER 18 Process Cost Systems
Prob. 18–2B (FIN MAN); Prob. 3–2B (MAN) (Continued)
Direct
COSTS Materials Conversion Total
Costs per equivalent unit:
Total costs for October in Blending
Costs charged to production:
Inventory in process, October 1 $ 46,368
Costs incurred in October 578,040
Total costs accounted for by the
Blending Department $624,408
Cost allocated to completed and
partially completed units:
Inventory in process, October 31 42,900 3,120 46,020
Total costs assigned by the Blending
Department $624,408
Costs transferred to Molding Department: $578,388
Work in process, October 31: 2,600 units at a cost of $46,020
1
$100,560 + $48,480
2
$429,000 + $100,560 + $48,480
Costs
2
67
18-57