CHAPTER 20 Process Cost Systems
Prob. 20–2A
1.
Whole Direct
UNITS Units Materials Conversion
Units charged to production:
Inventory in process, May 1 1,200
ABICA COFFEE COMPANY
Cost of Production Report—Roasting Department
For the Month Ended May 31, 2014
Equivalent Units
20-41
CHAPTER 20 Process Cost Systems
Prob. 20–2A (Continued)
Direct
COSTS Materials Conversion Total
Costs per equivalent unit:
Total costs for May in Roasting
Costs incurred in May 101,730
Total costs accounted for by the
Roasting Department $107,340
Cost allocated to completed and
partially completed units:
Inventory in process, May 1 balance $ 5,610
Costs transferred to Packing Department: $98,334
Costs
2
20-42
CHAPTER 20 Process Cost Systems
Prob. 20–2A (Concluded)
2. Direct materials cost decreased from $4.36 in April to $4.30 in May.
Computations:
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CHAPTER 20 Process Cost Systems
Prob. 20–3A
1.
Whole Direct
UNITS Units Materials Conversion
Units charged to production:
Inventory in process, July 1 700
Received from Milling Department 12,300
LILY FLOUR COMPANY
Cost of Production Report—Sifting Department
For the Month Ended July 31, 2014
Equivalent Units
20-44
CHAPTER 20 Process Cost Systems
Prob. 20–3A (Continued)
Direct
COSTS Materials Conversion Total
Costs per equivalent unit:
Total costs for July in Sifting
Total costs accounted for by the
Sifting Department $41,445
Cost allocated to completed and
partially completed units:
Inventory in process, July 31 2,600 480 3,080
Total costs assigned by the Sifting
1$4,670 + $2,758
Costs
67
20-45
CHAPTER 20 Process Cost Systems
Prob. 20–3A (Concluded)
2. Work in Process—Sifting Department 31,980
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
20-46
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
Date
Balance
Work in Process—Filling
20-47
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
HEARTY SOUP CO.
Cost of Production Report—Filling Department
For the Month Ended April 30, 2014
Equivalent Units
1
20-48
CHAPTER 20 Process Cost Systems
Prob. 20–4A (Continued)
Direct
COSTS Materials Conversion Total
Costs per equivalent unit:
Total costs for April in Filling
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
1$8,562 + $6,387
Costs
67
20-49
2.
Whole Direct
UNITS Units Materials Conversion
(a) (a)
Units charged to production:
Inventory in process, May 1 550
HEARTY SOUP CO.
Cost of Production Report—Filling Department
For the Month Ended May 31, 2014
Equivalent Units
20-50
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
Cost allocated to completed and
partially completed units:
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
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CHAPTER 20 Process Cost Systems
Appendix Prob. 20–5A
Whole Equivalent Units
UNITS Units of Production
Units to account for during production:
Inventory in process, December 1 10,500
COSTS
Unit costs:
Total costs for December in Roasting Department $572,130
Costs allocated to completed and partially completed units:
Transferred to Packing Department in December
(208,900 units × $2.70) $564,030
Inventory in process, December 31
SUNRISE COFFEE COMPANY
Cost of Production Report—Roasting Department
For the Month Ended December 31, 2014
20-52
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
d. Factory Overhead—Making Department 10,700
g. Work in Process—Packing Department 166,790
20-53
CHAPTER 20 Process Cost Systems
Prob. 20–1B (Concluded)
2. Work in Work in
Process— Process— Finished
Materials Making Dept. Packing Dept. Goods
Balance, Jul
y
1……
…
$ 5,100 $ 6,790 $ 7,350 $ 13,500
3.
Balance, Jul
y
1……
…
y
$0 $0
Factory Overhead— Factory Overhead—
Making Dept. Packing Dept.
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y
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
Received from materials storeroom 26,000
BAVARIAN CHOCOLATE COMPANY
Cost of Production Report—Blending Department
For the Month Ended October 31, 2014
Equivalent Units
20-55
CHAPTER 20 Process Cost Systems
Prob. 20–2B (Continued)
Direct
COSTS Materials Conversion Total
Costs per equivalent unit:
Total costs for October in Blending
Total costs accounted for by the
Blending Department $624,408
Cost allocated to completed and
Costs transferred to Molding Department: $578,388
Costs
20-56
CHAPTER 20 Process Cost Systems
Prob. 20–2B (Concluded)
Computations:
20-57