Wana + Whtasich Amini wim = Aomtguad Prostems et OBLEM 61 COST OF PRODUCTION REPORT: TWO DEPARTMENTS ‘The Acme Plastic Co. has two processing departments, All direct mater 7 Bepartment 1 at the beginning of the process. Conese oe eee it both processes. Data for Jandary 19K are show belons - : cance oases 2 Unis stared in process oon Un ansfered to next department 60,009 ats transferred to finshed goods . Ending iin proces " complete) "300 (0% comet) Cons added by department: Smee oneias san eee L ea mater, 200000 Direct labor 172,500 $162,250 Factory overhead (applied) 86,250 BIAS No beginnt 3 + © Sontag oe Raa Hr in report fe bth department + Department £ QuanT Nes Units to Account por = Units started in process Units Accounted for + Unit transpered to next department 60.000 Ending Unit in grecess 5. 000 75.000 Equivalent Production ect Materials Convertion Cost Unies completed and trancpered to Dept. 2 60.000 €0.000 Ending Units ja process + 15.000 x 100 % 1s. 000 18.000 X Go 7. 4.000 Total equivatent unit 75. 000 64.000 Scanned with CamScannerCosts Te Account For Total; Eqivelent — . Gauivalent ta! + PRlwaion — * aah cette Costs added by Department = Direct Materiats § Seo.000 76-400 Aveo Direc Later in 4.000 2180 Factory OVerhead 86.380 69.000 4,28 Total cots 40 account for 4 858-160 ag Costs Accounted For “Transferred to next defertmest (60.000 X 7:75) $4¢5.000 Werk-In Process Inveatory - Ending + Direct Mateiats (15-000 * 4:00) $ 60.000 Direct Labor (15.000 ¥ 2047 x 607-) 22. $50 Factory Ovethead (15-000 ¥ 125 x 607) Mt. 350 $93. 750 kal Cost accounted for 958-750 « Department 2 Quamtines Units bo Account Fer Unit received From preceding department Go- 000 Units accounted for + Ta Unit transferred to Finished qoods inventory 95-000 9 Units in process 8. 000 60- 000 Equivatent Production Conversion cost Units completed and tronsgerred to finished guds Inv. 55 -000 Ending Units in Process (6-000 x Bo 7/. complete) 4.000 Total equivalent units $+ 000 Scanned with CamScannerCosts To Account Fer ert et, no ee Gost From freteding department Transperred-in (Ge-000 x 67-7) Gs 000 60-000 ns Costs added by Department + rece Leber te2.280 69.600 415 Factory overhead 816195 59.000 1375, Total costs added aaa 5 Total cost bo accent for 708. 375 We 875 Costs “To Accounted For Transferred to Finished goods Inventory (55.000 40/07) 653-195 Work=I9 process taveatery ~ Ending: Coste fron precediag department (8-00 x 775) 22.760 Direct Labor (5.000 x Bo% x 27F) 000 Factory Overhead (8.000 % B67: x 1370) 5-600 55.266 Total Costs accovnted for 708.375 The Acme Plastic co- Journal Entries + Department 4 (A) Werk Ia frocecs laventery ~ Dept ¢ 558. 750 Materids Inventory 309. 000 Fagrell Pag able (72-500 Factory Overhead applied 8G. 250 (costs added by Department 4) (2) Work-In Process Inventory ~ Dept- 2 465. 000 Werk - In process aventery — Dept 4 465-000 (To transfer Cost of completed goods te Dept 2) Scanned with CamScanner«Department 2 (3) Work-ln procese inventory - Dept. 2 243,375 Payroll payable 162. 250 Factery overhead applied 61. 125 Ceosts added by Department +) C4) Finished gosds Inventory 6r3.125 Work-te process Inventory ~Degt 2 659-125 (To trancper cost of completed goods t# Fielded geods (ar. Scanned with CamScannerNama :thtasioh Aenini qyim + Aoatatag Problem G-3 PRORLEM 63- vet. The two departments had the following ay ie Stared nprocs dng the prod tnt eee fem beparinet Unis sed to prodcton Tarte to fed goods ventory Ending units In process: cam ect mater 10% complete: onverion cots 30% compte Direct mater 10% expt: eonvenion at oi complete con ‘rec mates Dea abr Fecaryoverhesd (pied) Required: Prepare sepa Departments 1 and 2. «3 Scanned with CamScanner «© Department 4 QuaNTITES Units to Account Fer + Units started in process Usits accovnted for + Waits Eranefered ke next department Ending Unit in process Equivatent Production Direct Materials Unies Completed and transfered be Oert-2 Ending Units ia Process : 4-000 x 100% 4. 000 x 307 Total Equivalent Unit ‘Twp processing departments are used by Grleser Chemical Co to produce ts prod: liesand costs during the month of Fam eran 1 beranrwen 2 0000 76.000 4,000 78.000 4900 . 2,000 $200900 $160,000 9500. 237,600 96500 198,000 cost of production reports for the month of January for rE ‘76-000 4. 000 80» 000 Conversion Cost 76-000 76-000 4-000 (200 88-900 77-208 Scanned with CamScanner2 Sqvivabent, unit Costs To Account For Sa Fe sorts Cost added bg Department + Dicest Materrals oo 00 84-200 25 Divest Labor 289.600 3,78 Factory Overhead 96. £00 1038 Total Costs te Aecount Fer 56 6-000 TS Costs Accsuated For Transperred bo next department (7-000 x 76) 570-000 Work =n process (nveatery - Endug + Direct Materiats (4.000 x 2-5) to 000 Dives Leb (4-000 x 30% x4.76) 4.500 Factory Overhead (4.000 x B07. Xte25) (500 16. 000 Total cost accourted for aE 686. 000 © Department 2. QuANTIMEs Units to Account for : Woits transferred in 7%. t00 units added to froduction 4, 000 G0 . 000 Accounted for : z Goits transferred bo fielthed eds in T8-c00 Ending Units in process cee. 8.060 Equivatent Production Direct Materials Conversion Costs Units Completed and Eranupered fo fisithad mv- 78.000 76-060 Gading Unit in frecest 2.000 x 100% 2-000 2.000 * 6% 4.200 80.000 74. 200 Total equivalent Units Scanned with CamScannerCosts To Account For Costs from preceding Veguteent Units added te production Adjusted site and watt cost Cosh added v9 Department + Direct Materials "60.000 89.000 2/00 Direct Labee 337-600 74-00 3.0 Factory Overhead $98.00 79-200 24f0 Total costs to arcu Fur 149635 Costs Accounted For Transpereed to finished geod Inventory (76.00 «14,636 1.140070 Werk- fe process Inventey- Endieg + Costs From freceding department (2608 % 7-125) (4.350 Direct Materials ( 2.000 * 2/00) A. 000 Direct Labor (2-000 % 60%: ¥ 2,60) 3-600 Factory Overhead (2.00 K 607: 2,54) 3.000 24. ase Total costs accousted for | 1GB. Coo Grieser chemical Compaey Journal Fatries + Department $ (1) Wert» process Inventory ~ Dept: 4 586. 000 Materiate Snvertory 260.000 Payroll Payable 20g. $00 Factory overhead applied $6, 500 (cost added by Departament 4) (a) Werk=Im precees Inuentory - Oege-2 50.000 Werk-In Process tnventory - Dept 1 $70.00 (To transfer Corts of Completed goods ty Vepartmeet 2) Scanned with CamScanner« Depactmeat 2 (3) Work-In Procect {nventery - Dept 2 595. Ceo Materials (nyentecs (G0. 600 Pago Payable 237. 660 Factory Overhead (38. 000 (come added by depart vent a) (4) Finished goods (nveatory 1. 148-150 Work-In frocess Inventory Dept 2 1. 140- 780 (Te tvansper costs oF completed goods finished 92°44 Inventory) Scanned with CamScanner