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Discussion of Assignment - Process Costing
Discussion of Assignment - Process Costing
Requirement: Cost of Production Reports for two departments using FIFO and average method,
under the following assumptions
1. Materials are added at the start of the process
2. Materials are added at the end of the process
Note: In this problem, only FIFO method is required because the amount of each element of
manufacturing cost for beginning inventories are not given. For average method – bonus.
FIFO method:
Equivalent production:
Additional cost:
Labor 24,000 x .3371 8,090
In process, end
Total 223,000
FIFO method:
Equivalent production:
Additional cost:
In process, end
Total 368,280
2. Materials are added at the end of the process (Dept. A) – FIFO Method
Equivalent production:
Materials 120,000/60,000 2
Additional cost:
In process, end
Materials 0
Total 223,000
Equivalent production:
Additional cost:
In process, end
Materials