COST ACCOUNTING AND CONTROL

PROCESS COSTING
CASE PROBLEMS

Problem 1
Boss V Manufacturing Corporation engage in processing of cup noodles in which the following are the
production processes for the month of December 2022. The company have no beginning inventory or in
process on hand

Units placed into Production 50,000

Total units Completed 40,000
Normal Loss 1,000
In Process Ending 8,000

Additional Information
The ending units are already completed up to 70%. The Company placed its material equally. First 50% at the
beginning of the production and another 50% when the production takes place at 80%. Any other losses are
considered as abnormal. The inspection took place at the end of production

Required:
Prepare Quantity schedule showing the equivalent production for both materials and conversion cost.

Problem 2
Kimmy Manufacturing Company engaged in processing of bottled water production which uses the
continuous production process thus adapting the process costing method of accounting. The company uses
two departments which are the assembly and packaging department. Below is the cost information gathered
for the production for the month of December 2022.
Assembly Department Packaging department
Total Units Place into Production 100,000
Completed and transferred Out 85,000 73,000
In Process ending 15,000 12,000
Percentage of Completion 55% 40%

Cost Incurred
Materials 300,000 142,350
Labor 193,960 200,000
Overhead 290,940 148,155

Additional Information
The company places its material at the beginning in Assembly Department and at the end of the production in
Packaging Department

Required:
Make a Cost Production report
Problem 3
Dinno Manufacturing Corporation engaged in manufacturing of toothpaste to have a whiter and stronger
tooth. The company use two department and process costing method to account its cost in its operation. The
details of production in Department B are as follows. The Company apply its materials at the beginning of the
process of the production.

Completed and transferred Out 60,000

In Process ending (At 37.50% completion) 15,000
Loss Units 5,000

Cost Incurred
Cost received from Prior Department 780,000.00
Materials 480,000.00
Conversion cost 962,500.00

Required:
Make a Cost Production report under the following cases
a. The loss is normal and found at the beginning of the production
b. The loss is abnormal and found at the end of the production process