L1-Practice Problem-Process Costing

Single Department Cost of Production Report

A. Prepare the cost of production report for the month ended February 28, 2020 assuming that the
company uses FIFO method.
Bass Company
Cost of Production Report
For the Month Ended February 28,2020
(FIFO METHOD)

PRODUCTION DATA Physical Units Direct Materials Conversion

Beg. WIP inventory 1,000
Started into production 8,400
Units to account for 9,400

Units completed & transferred

Beg. WIP inventory 1,000 600 800
Started into production 8,100 8,100 8,100
Ending WIP inventory 300 225 180
Units accounted for 9,400 8,925 9,080

COST DATA Total Direct Materials Conversion

Cost in Beg.WIP inventory ₱ 5,006.30
Current period cost 86,354.00 62,928.00 23,426.00
Total cost to account for ₱ 91,360.30
Divided by EUP 8,925 9,080
Cost per EUP ₱ 9.63 ₱ 7.05 ₱ 2.58

COST ASSIGNMENT
Transferred out:
Beg. WIP inventory costs ₱ 5,006.30
Cost to complete:
Direct Materials (600 x P7.05) ₱ 4,230.45
Conversion (800 x P2.58) 2,063.96 ₱ 6,294.42
Started and completed (8,100 x P9.63) 78,008.77 ₱ 89,309.49
Ending WIP inventory:
Direct Materials (225 x P7.05) 1,586.42
Conversion (180 x P2.58) 464.39 2,050.81
Total cost accounted for ₱ 91,360.30
B. Prepare the entries for the direct material, direct labor, and overhead cost assigned to production
during February as well as the transfer of the completed goods during February using the FIFO method.

Work in Process Inventory ₱ 62,928.00

Raw Material Inventory ₱ 62,928.00

Work in Process Inventory 13,070.00

Wages Payable 13,070.00

Work in Process Inventory 10,356.00

 Manufacturing Overhead 10,356.00

Finished Goods Inventory 89,309.49

Work in Process Inventory 89,309.49
C. Prepare the cost of production report for the month ended February 28, 2020 assuming that the
company uses weighted-average method.
Bass Company
Cost of Production Report
For the Month Ended February 28,2020
(Weighted-average Method)
PRODUCTION DATA Physical Units Direct Materials Conversion
Beg. WIP inventory 1,000
Started into production 8,400
Units to account for 9,400

Units completed & transferred 9,100 9,100 9,100

Ending WIP inventory 300 225 180
Units accounted for 9,400 9,325 9,280

COST DATA Total Direct Materials Conversion

Cost in Beg.WIP inventory ₱ 5,006.30 4,133.20 873.10
Current period cost 86,354.00 62,928.00 23,426.00
Total cost to account for ₱ 91,360.30 67,061.20 24,299.10
Divided by EUP 9,325 9,280
Cost per EUP ₱ 9.809987 ₱ 7.191550 ₱ 2.618438

COST ASSIGNMENT
Transferred out (9,100 x P9.809987) ₱ 89,270.88
Ending WIP inventory:
Direct Materials (225 x P7.191550) 1,618.10
Conversion (180 x P2.618438) 471.32 2,089.42
Total cost accounted for ₱ 91,360.30
D. Prepare the entries for the direct material, direct labor, and overhead cost assigned to production
during February as well as the transfer of the completed goods during February using the weighted
average method.
Work in Process Inventory ₱ 62,928.00
Raw Material Inventory ₱ 62,928.00

Work in Process Inventory 13,070.00

Wages Payable 13,070.00

Work in Process Inventory 10,356.00

Manufacturing Overhead 10,356.00

Finished Goods Inventory 89,270.88

Work in Process Inventory 89,270.88