CHAPTER 20 Process Cost Systems
Prob. 20–1A (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…
…
Debits…………………
…
Factory Overhead— Factory Overhead—
Spinning Dept. Tufting Dept.
$0 $0
21,800 19,000
2
20-41
…
CHAPTER 20 Process Cost Systems
Prob. 20–2A
1.
Whole Direct
UNITS Units Materials Conversion
Units charged to production:
Inventory in process, March 1 1,500
Units to be assigned cost:
Inventory in process, March 1
(30% completed) 1,500 01,050
FRESH MOUNTAIN COFFEE COMPANY
Cost of Production Report—Roasting Department
For the Month Ended March 31, 2016
Equivalent Units
1
20-42
CHAPTER 20 Process Cost Systems
Prob. 20–2A (Continued)
Direct
COSTS Materials Conversion Total
Costs per equivalent unit:
Total costs for March in Roasting
Department $86,970 $17,672
Costs assigned to production:
Inventory in process, March 1 $ 6,150
Costs incurred in March 104,642
Cost allocated to completed and
partially completed units:
Inventory in process, March 1 balance $ 6,150
To complete inventory in process,
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
$86,970 + $11,900 + $5,772
Costs
2
1
20-43
CHAPTER 20 Process Cost Systems
Prob. 20–2A (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:
20-44
1.
Whole Direct
UNITS Units Materials Conversion
Units charged to production:
Inventory in process, July 1 900
Received from Milling Department 15,700
Units to be assigned cost:
Inventory in process, July 1
(3/5 completed) 900 0360
Started and completed in July 14,600 14,600 14,600
WHITE DIAMOND FLOUR COMPANY
Cost of Production Report—Sifting Department
For the Month Ended July 31, 2016
Equivalent Units
1
2
20-45
CHAPTER 20 Process Cost Systems
Prob. 20–3A (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:
Costs
2
20-46
CHAPTER 20 Process Cost Systems
Prob. 20–3A (Concluded)
2. Work in Process—Sifting Department 33,755
3. Direct materials: $0.10 increase ($2.15 – 2.05)
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
20-47
CHAPTER 20 Process Cost Systems
Prob. 20–4A
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
Date
Balance
Work in Process—Filling
20-48
CHAPTER 20 Process Cost Systems
Prob. 20–4A (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
20-49
CHAPTER 20 Process Cost Systems
Prob. 20–4A (Continued)
Direct
COSTS Materials Conversion Total
Costs per equivalent unit:
Total costs for April in Filling
Department $34,320 $14,949
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
67
1
20-50
CHAPTER 20 Process Cost Systems
Prob. 20–4A (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
20-51
CHAPTER 20 Process Cost Systems
Prob. 20–4A (Concluded)
Direct
COSTS Materials Conversion Total
Costs per equivalent unit:
Total costs for May in Filling
Department $44,160 $18,920
Total costs accounted for by the
Filling Department $66,391
Cost allocated to completed and
partially completed units:
Inventory in process, May 1 balance (c) $ 3,311
To complete inventory in process,
1
$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
1
20-52
CHAPTER 20 Process Cost Systems
Prob. 20–5A
Whole Equivalent Units
UNITS Units of Production
Units to account for during production:
Inventory in process, December 1 10,500
Received from materials storeroom 210,400
COSTS Costs
Unit costs:
Total costs for December in Roasting Department $572,130
Total equivalent units 211,900
Cost per equivalent unit $ 2.70
Costs charged to production:
SUNRISE COFFEE COMPANY
Cost of Production Report—Roasting Department
For the Month Ended December 31, 2016
÷
20-53
CHAPTER 20 Process Cost Systems
Prob. 20–1B
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
20-54
CHAPTER 20 Process Cost Systems
Prob. 20–1B (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
20-55
CHAPTER 20 Process Cost Systems
Prob. 20–2B
1.
Whole Direct
UNITS Units Materials Conversion
Units charged to production:
Inventory in process, October 1 2,300
Units to be assigned cost:
Inventory in process, October 1
(3/5 completed) 2,300 0920
Started and completed in October 23,400 23,400 23,400
BAVARIAN CHOCOLATE COMPANY
Cost of Production Report—Blending Department
For the Month Ended October 31, 2016
Equivalent Units
1
2
20-56
CHAPTER 20 Process Cost Systems
Prob. 20–2B (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
Cost allocated to completed and
partially completed units:
Inventory in process, October 1 balance $ 46,368
To complete inventory in process,
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
20-57