Go, Mai Leah Vanessa

BA203

CHAPTER 6 PROCESS COSTING

57. LO.2 & LO.4 (WA; second department)

Octavia Corp.'s
Cost of Production Repo
For the Month

Actual Units
Work in Process Inventory, beg. 8,000
Units started 40,000
Units to account for 48,000

Work in Process Inventory, beg 8,000 100%

Started and Completed 36,000
Closing Inventory 4,000 100%
Total Units accounted 48,000

Work In Process Inventory, beg
Current Cost
Cost to account for
Equivalent units of production
Cost per Equivalent units of production
Actual Units
$ 278,872.00
$ 2,739,020.00
$ 3,017,892.00
63.87

Cost Assignment
Transferred out
Closing Work in Process Inventory
Transferred in $ 151,680.00
Direct Material $ 22,484.00
Direct Labor $ 23,880.00
Overhead $ 9,568.00
Total Cost Accounted

59. LO.3 & LO.4 (FIFO; second department)

Octavia Corp.'s
Cost of Produ
For the Month
 Units
Work in Process Inventory, beg. 8,000
Units started 40,000
Total number of units 48,000

Work in Process Inventory, beg. 8,000

Started and Completed 36,000
Work in Process Inventory, end. 4,000 100%
Total units accounted 48,000

Actual Units
Work In Process Inventory, beg $ 278,872.00
Current Cost $ 2,739,020.00
Total Costs Accounted $ 3,017,892.00
Equivalent units of production
Cost per Equivalent units of production $ 67.05

Cost Assignment
Transferred out
Work in Process Inventory, beg.
Completed Work in Process
Direct Material $ 13,200.00
Direct Labor $ 58,080.00
Overhead $ 34,720.00
Started and Completed
Total Cost Transferred Out
Transferred In $ 162,000.00
Direct Material $ 23,100.00
Direct Labor $ 24,200.00
Overhead $ 9,920.00
Total Cost Accounted

67. LO.2 & LO.8 (Appendix 3; WA; normal and abnormal discrete spoilage)

Maximum normal spoilage = 70,000 × 0.03 = 2,100 unit

LaToya Company
Cost of Production Report
For the Month Ended May 31, 2013

Producation Data Units

Beginning WIP Inventory 5,600
Units Started 74,400
Units to account for 80,000

Beginning WIP Inventory 5,600

Started & complete 64,400
Ending WIP Inventory 7,500
Normal spoilage 2,100
Abnormal spoilage 400
Units accounted for 80,000

Cost Data Total

Beginning WIP Inventory $ 7,632.00
Current cost 106,168
Cost to account for $ 113,800.00
Divided by EUP
Cost per EUP $ 1.45

Cost Assignment
Units completed (70,000 × $1.45)
Normal spoilage:
Direct material (2,100 × $1.01) $ 2,121.00
Conversion (2,100 × $0.44) 924
Ending inventory:
Direct material (7,500 × $1.01)
Conversion (2,500 × $0.44)
Abnormal spoilage:
Direct material (400 × $1.01)
Conversion (400 × $0.44)
Total cost accounted for

68. LO.3 & LO.8 (Appendix 3; FIFO; normal and abnormal discrete spoilage)

LaToya Company
Cost of Production Report - FIFO
For the Month Ended May 31, 2013

Production Data Units

Beginning WIP Inventory 5,600
Units started 74,400
Units to account for 80,000

Beginning WIP Inventory 5,600

Started & completed 64,400
Ending WIP Inventory 7,500
Normal spoilage 2,100
Abnormal spoilage 400
Units accounted for 80,000

Cost Data Units

Beginning WIP Inventory $ 7,632.00
Current cost 106,168
Total cost to account for $ 113,800.00
Divided by EUP
Cost per EUP $ 1.45

Cost Assignment
Transferred out:
Beginning WIP Inventory cost
Cost to complete
Conversion (2,800 × $0.45)
Total cost of BI
Started & completed (64,400 × $1.45)
Normal spoilage:
Direct material (2,100 × $1.00) $ 2,100.00
Conversion (630 × $0.45) $ 283.50
Total cost transferred out
Ending WIP Inventory:
Direct material (7,500 × $1.00) $ 7,500.00
Conversion (2,500 × $0.45) $ 1,125.00
Abnormal spoilage:
Direct material (400 × $1.00) $ 400.00
Conversion (120 × $0.45) $ 54.00
Total cost accounted for
 Octavia Corp.'s - Curing Department
Cost of Production Report -Weighted Average Method
For the Month Ended May 31, 2013

Transferred In Direct Material Direct Labor

8,000 8,000 8,000

36,000 36,000 36,000
4,000 70% 2,800 50% 2,000 40%
48,000 46,800 46,000

Transferred In Direct Material Direct Labor

$ 200,160.00
$ 1,620,000.00
$ 1,820,160.00
48,000
37.92
$ 42,504.00
$ 333,300.00
$ 375,804.00
46,800
8.03
$ 31,360.00
$ 517,880.00
$ 549,240.00
46,000
11.94

$ 2,810,280.00

$ 207,612.00
$ 3,017,892.00

Octavia Corp.'s - Curing Department

Cost of Production Report - FIFO
For the Month Ended May 31, 2013
 Transferred In Direct Material Direct Labor

- 80% 1,600.00 40% 4,800.00 30%

36,000 36,000 36,000
4,000 70% 2,800 50% 2,000 40%
40,000 40,400 42,800

Transferred In Direct Material Direct Labor

$ 200,160.00 $ 42,504.00 $ 31,360.00
$ 1,620,000.00 $ 333,300.00 $ 517,880.00

40,000 40,400 42,800

$ 40.50 $ 8.25 $ 12.10

$ 278,872.00

$ 106,000.00
$ 2,413,800.00
$ 2,798,672.00

$ 219,220.00
$ 3,017,892.00

Toya Company
Production Report
nth Ended May 31, 2013

Material Conversion
 5,600 5,600
64,400 64,400
7,500 2,500
2,100 2,100
400 400
80,000 75,000

Material
$ 6,400.00
74,400
$ 80,800.00
80,000
$ 1.01
Conversion
$ 1,232.00
31,768
$ 33,000.00
75,000
$ 0.44

$ 101,500.00

$ 3,045.00 $ 104,545.00

$ 7,575.00
$ 1,100.00 $ 8,675.00

$ 404.00
$ 176.00 $ 580.00
$ 113,800.00

Toya Company
oduction Report - FIFO
nth Ended May 31, 2013

Material Conversion

0 2,800
 64,400 64,400
7,500 2,500
2,100 630
400 120
74,400 70,450

Materials Conversion
$ 6,400.00 $ 1,232.00
$ 74,400.00 $ 31,768.00

74,400 71,570
$ 1.00 $ 0.44

$ 7,632.00

$ 1,260.00
$ 8,892.00
$ 93,380.00

$ 2,383.50
$ 104,655.50

$ 8,625.00

$ 454.00
$ 113,734.50
 Overhead

8,000
36,000
1,600
45,600

Overhead
$ 4,848.00
$ 267,840.00
$ 272,688.00
45,600
5.98
 Overhead

5,600.00
36,000
1,600
43,200

Overhead
$ 4,848.00
$ 267,840.00

43,200
$ 6.20