Illustration 13-11

CUTTING DEPARTMENT
Equivalent Production Computations- FIFO
Month of February 2018

Transferred Out to Next Department;

Completion of Beginning Work in Process (3,760 x 0%) 0
Started and Completed 5,640
Work In Process- Ending (5,320 x 100%) 5,320
Lost Units- Normal (200 x 100%) 200
Equivalent Units for Materials 11,160

Labor
Transferred Out to Next Department:
Completion of Beginning Work in Process (3,760 x 60%) 2,256
Started and Completed 5,640
Work in Process - Ending (5,320 x 45%) 2,128
Lost Units- Normal (200 x 100%) 200
Equivalent Units for Labor 10,224

Overhead
Transferred Out to Next Department:
Completion of Beginning Work In Process (3,760 x 45%) 1,692
Started and Completed 5,640
Work in Process- Ending (5,320 x 55%) 2,926
Lost Units- Normal (200 x 100%) 200
Equivalent Units for Overhead 10,458

Illustration 13-12

CUTTING DEPARTMENT
Cost of Production Report
Month of February 2018

QUANTITY SCHEDULE Units

( a ) Quantity to Be Accounted For:
Work in Process- Beginning 3,760
Started - Current Month 11,160
Total to Be Accounted For 14,920
(b) Quantity Accounted For:
Transferred Out to Next Dept.
From beginning WIP 3,760
Started and Completed 5,640 9,400
Work in Process- Ending 5,320
Lost Units- Normal 200
Total Accounted For 14,920

Total Cost Equivalent

COST SCHEDULE Units
( c ) Costs to Be Accounted For:
Work in Process- Beginning P 65, 048
Costs Incurred in Current Month
Costs Incurred in this Department
Materials P 69, 944 ÷ 11,160 =
Labor 82, 416 ÷ 10,244 =
Overhead 133, 886 ÷ 10,458 =
Total Costs in This Dept. 286, 246
Total Costs to Be Accounted for P 351, 294

( d ) Cost Accounted For:

Transferred Out to Next Dept.:
From Beginning WIP inventory P 65,048
Current Month Costs:
Materials 0 = 0 x
Labor 18,186 = 2,256 x
Overhead 21,661 = 1,692 x

Costs of Completed beg. WIP P 104,895

Started and Completed 153,017 = 5,640 x
Lost Units- Normal 5,426 = 200 x
Total Costs of Transferred Out P 263,338 ÷ 9,600 =
Work in Process- Ending
Costs in this Department:
Materials P 33,343 = 5,320 x
Labor 17,154 = 2,128 x
Overhead 37,459 = 2,296 x
Total 87,956
Total Costs Accounted For P 351,294
 Unit
Costs

P 6.26738
8.06103
12.80226
P27.13067

P 6.26738
8.06103
12.80226

27.13067
27.13067
27.43104

P 6.26738
8.06103
12.80226
/
Illustration 13-14

ASSEMBLY DEPARTMENT
Cost of Production Report- FIFO
Month of February 2018

Transferred In Costs from Prior Department:

Transferred Out to Next Department
Completion of Beginning Work in Process (970 x 0%) 0
Started and Completed 7,850
Work in Proces- Ending ( 1,100 x 100%) 1,100
Lost Units- Normal ( 450 x 100%) 450
Equivalent Units for Transferred In Costs 9,400

Materials
Transferred Out to Next Department:
Completion of Beginning Work in Process (970 x 40%) 388
Started and Completed 7,850
Work in Process- Ending (1,100 x 55%) 605
Lost Units- Normal (450 x 100%) 450
Equivalent Units for Materials 9,293

Labor
Transferred Out to Next Department:
Completion of Beginning Work in Process (970 x 40%) 388
Started and Completed 7,850
Work in Process- Ending (1,100 x 55%) 605
Lost Units - Normal (450 x 100%) 450
Equivalent Units for Labor 9,293

Overhead
Transferred Out to Next Department:
Completion of Beginning Work in Process (970 x 40%) 388
Started and Completed 7,850
Work in Process - Ending (1,100 x 55%) 605
Lost Units - Normal (450 x 100%) 405
Equivalent Units for Overhead 9,293

Illustration 13-15

ASSEMBLY DEPARTMENT
Cost of Production Report - FIFO
Month of February 2018
QUANTITY SCHEDULE Units
( a ) Quantity to Be Accounted For:
Work in Process 970
Started/ Transferred In 9,400
Total to Be Accounted For 10,370

(b) Quantity Accounted For:

Transferred Out to Next Dept.
From beginning WIP 970
Started and Completed 7,850 8,820
Work in Process - Ending 1,100
Lost Units- Normal 450
Total Accounted For 10,370

Total Equivalent
COST SCHEDULE Cost Units
( c ) Costs to Be Accounted For:
Work in Process - Beginning P 39,770
Costs Incurred in this Month
Trans- In Costs Fr.Prior Dept. 263,338 ÷ 9,400 =
Costs Added this Dept.
Materials 23,128 ÷ 9,293 =
Labor 70,638 ÷ 9,293 =
Overhead 74,735 ÷ 9,293 =
Total Costs Added 168,501
Total Costs in this Month P 431,839
Total Costs to Be Accounted For P 471,609

( d ) Cost Accounted For:

Transferred Out to Next Dept.:
From Beginning WIP P 39,770
Costs Added this Month:
Materials 966 = 388 x
Labor 2,949 = 388 x
Overhead 3,120 = 388 x
Total costs of completed BWIP P 46,805
Started and Completed 362,251 = 7,850 x
Lost Units- Normal 20,766 = 450 x
Total Costs of Units Trans- Out P 429,822 ÷ 8,820 =
Work in Process- Ending:
Trans- In Costs Fr. Prior Dept. 30,816 = 1,100 x
Costs Incurred this Dept.
Materials 1,506 = 605 x
Labor 4,599 = 605 x
Overhead 4,866 = 605 x
 Total WIP 41,787
Total Costs Accounted For P 471, 609
 Unit =
Costs

P 28.01468

2.48876
7.60121
8.04208
P 18.13205
P 46.16673

P 2.48876
7.60121
8.04208

46.14673
46.14673
48.73265

28.01468

P 2.48876
7.60121
8.04208
Illustration 13-16

PACKAGING DEPARTMENT
Cost of Production Report- FIFO
Month of February 2018

QUANTITY SCHEDULE Units

(a ) Quantity to Be Accounted For:
Work in Process- Beginning 2,720
Started / Transferred In 8,820
Total to Br Accounted for 11,540

(b) Qunatity Accounted for:

Transferred Out to Next Dept.
From Beginning WIP 2,720
Started and Completed 4,900 7,620
Work in Process - Ending 3,820
Abnormal Lost Units 100
Total Accounted For 11,540

Total Equivalent Unit

COST SCHEDULE Cost Units Costs
( c ) Costs to Be Accounted For:
Work in Process - Beginning P 136,530
Costs- Incurred this Month
Trans- In Costs Fr. Prior Dept. P 429,822 ÷ 8,820 = P 48.73265
Costs Added this Dept.
Materials 2,560 ÷ 7,720 = 0.33161
Labor 20,480 ÷ 7,940 = 2.57935
Overhead 16,885 ÷ 7,885 = 2.14141
Total Costs Added 39,925 P 5.05237
Total Cost this Month 469,747 P53.78502
Total Costs to Be Accounted For P 606,277

( d ) Cost Accounted For:

Transferred Out to Next Dept.
From beginning WIP P 136,530
Costs Added this Month:
Materials 902 = 2,720 x P .33161
Labor 5,613 = 2,176 x 2.57935
Overhead 4,951 = 2,312 x 2.14141
Total Costs of completed BWIP P 147,996
Started and Completed 263,546 = 4,900 x 53.78502
 Total Costs of Units Trans- Out P 411,542 ÷ 7,620 = 54.00814
Work in Process - Ending:
Trans- In Costs Fr. Prior Dept. 186,159 = 3,820 x 48.73265
Costs Incurred this Dept.
Materials 0 = 0 x P .33161
Labor 1,971 = 764 x 2.57935
Overhead 1,227 = 573 x 2.14141
Total WIP 189,357
Abnormal Lost Units 5,378 = 100 x 53.78502
Total Costs Accounted For P 606,277