CASE STUDY PROCESS COSTING

4.17 & 4.18

MATA KULIAH AKUNTANSI BIAYA

KELAS B1

Disususn oleh :

Anggota Kelompok 3 :

1. Dewa Gede Mahesa Pratama 2107531298 (33)

2. Arista Arya Ismaya 2107531239 (25)
3. Ni Komang Pebi Arisanti 2107531297 (32)
1 4. Ni Putu Mimi Wahyuni 2107531231 (24)

Dosen Pengampu:
Dr. I Putu Sudana, SE., MSAcc., Ak.

PROGRAM STUDI AKUNTANSI

FAKULTAS EKONOMI DAN BISNIS
UNIVERSITAS UDAYANA
2021/2023
4.17. Transferred-in Costs, Weighted-Average Method
Telemark-Kjemi AS manufactures an industrial solvent in two departments – mixing
and cooking. This question focuses on the Cooking Department. During June 2018, 90
tonnes of solvent were completed and transferred out from the Cooking Department.
Direct materials are added at one point in time during the process. Conversion costs are
added uniformly during the process. Telemark-Kjemi uses the weighted-average
process-costing method. The following information about the actual costs for June 2018
is available.
Transferred-in Cost Direct Materials Conversion Costs
Equivalent Total Equivalent Total Equivalent Total
Tonnes Costs Tonnes Costs Tonnes Costs
Work in progress, 1 June 40 NOK 40 000 0 NOK 0 30 NOK 18 000
Work done in June 80 NOK 87 200 90 NOK 36 000 75 NOK 49 725

Completed in June ? ? ? ? ? ?
Work in progress, 30 June ? ? ? ? ? ?

Required:
1. Calculate the equivalent tonnes of solvent completed and transferred out and in closing
work in progress for each cost element.
Transferred-in Cost Direct Materials Conversion Costs
Equivalent Total Equivalent Total Equivalent Total
Tonnes Costs Tonnes Costs Tonnes Costs
Work in progress, 1 June 40 NOK 40 000 0 NOK 0 30 NOK 18 000
Work done in June 80 NOK 87 200 90 NOK 36 000 75 NOK 49 725
Total Accounted For 120 90 105

Completed in June 90 90 90
Work in progress, 30 June 30 0 15

2. Calculate cost per equivalent unit for opening work in progress and work done in current
period.
Transferred -in Direct Conversion
Costs Materials Costs
Equivalent Unit Cost of Opening Work In
Progress
Cost of Working in Progress, Opening (Given) NOK 40.000 - NOK 18.000
Devide by Equivalent Units Of Opening Work In
Progress 40 - 30
Cost per Equivalent Units of Opening Work in
Progress 1.000 - 600
 Transferred -in Direct Conversion
Costs Materials Costs
Equivalent Unit Costs of Work Done In
Current Period
Cost added in Current Period NOK 87.200 NOK 36.000 NOK 49.725
Devide by Equivalent Units of Work Done in
Current Period 80 90 75
Cost per Equivalent Units of Work Done in
Current Period 1.090 400 663

3. Summarise total costs to account for and assign these costs to units completed (and
transferred out) and to units in closing work in progress using the weighted-average
method.
Total Production
Tranferred-in Cost Direct Materials Conversion Costs
Cost
Equivalent Cost Per Total Equivalent Cost Per Equivalent Equivalent Cost Per Equivalent
Total Costs Total Costs
Unit Equivalent Unit Costs Unit Unit Unit Unit
Panel a:
Work In Progress, Opening 40 1.000 40.000 0 0 30 600 18.000 58.000
Work Done in Current Period Only 80 1.090 87.200 90 400 36.000 75 663 49.725 172.925
To Account For 120 1.060 127.200 90 400 36.000 105 67.725 230.925
Panel b:
Completed and transferred out during current period:
(90 physical tonnes) 90 1.060 95.400 90 400 36.000 90 645 58.050 189.450
Work in Progress, Closing
(30 physical tonnes) 30 1.060 31.800 0 0 15 645 9.675 41.475
Accounted For 120 127.200 90 36.000 105 67.725 230.925

4.18. Transferred-in Costs, FIFO Method

Refer to the information in Exercise 4.17. Suppose that Telemark-Kjemi uses the FIFO
method instead of the weighted-average method in all its departments. The only
changes under the FIFO method are that the total transferred-in cost of opening work
in progress is NOK 39 200 and that the cost of work done in the current period is NOK
85 600.
Do Exercise 4.17 using the FIFO method.

Required:
1. Calculate the equivalent tonnes of solvent completed and transferred out and in closing
work in progress for each cost element.
Equivalent Units
Flow of Production Physical Units Transferred-in Direct Conversion
Cost Materials Cost
Work in progress, opening 40 (work done before current period)
Transferred-in during current period: 80
To account for 120
Completed and transferred out during current period:
From opening work in progress 40
40 x (100% - 100%); 40 x (100% - 0%); 40 x
(100% - 75%) 0 40 10
Started and completed 50
50 x 100%; 50 x 100%; 50 x 100% 50 50 50
Work in progress, closing 30
30 x 100%; 30 x 0%; 30 x 50% 30 0 15
Accounted for 120
Work done in current period only 80 90 75
2. Calculate cost per equivalent unit for opening work in progress and work done in current
period.
Transferred-in Direct Conversion
Cost Materials Cost
Equivalent Unit Cost of Opening Work In
Progress
Cost of work in progress, opening (given) NOK 39.200 - NOK 18.000
Divide by equivalent units of opening work in
progress 40 - 30
Cost per equivalent units of opening work in
progress 980 - 600

Transferred-in Direct Conversion

Cost Materials Cost
Equivalent unit cost of work done in current
period
Cost added in current period NOK 85.600 NOK 36.000 NOK 49.725
Divide by equivalent units of work done in current
period 80 90 75
Cost per equivalent units of work done in current
period 1.070 400 663

3. Summarise total costs to account for and assign these costs to units completed (and
transferred out) and to units in closing work in progress using the FIFO method.
Total Production Transferred-in Direct Conversion
Costs Costs Materials Costs
Work in progress, opening 57.200 (Work done before current period)
Cost added in current period 171.325 85.600 36.000 49.725
Divide by equivalent units of work done in current period (÷) 80 90 75
Cost per equivalent unnits of work done in current period 1.070 400 663
Total cost to account for 228.525
Total cost to account for
Assignment of costs
Completed and transferref out (90 units)
Work in progress, opening (40 units) 57.200
Transferred-in cost added in current period 0 (0 x 1.070)
Direct materials added in current period 16.000 (40 x 400)
Corversion cost added in current period 6.630 (10 x 663)
Total from opening stock 79.830
Started and completed (50 units) 106.650 (50 x 1.070) (50 x 400) (50 x 663)
Total costs of units completed and transferred out 186.480
Work in progress, closing (30 units)
Transferred-incost 32.100 (30 x 1.070)
Direct materials 0 (0 x 400)
Conversion costs 9.945 (15 x 663)
Total from work in progress, closing 42.045
Total costs accounted for 228.525