PROCESS COSTING EXERCISES

E3-20

The Welding Department of Majestic Company has the following production and
manufacturing cost report for February , 2014 All materials are added at the
beginning of the process.
Instruction

Prepare the production cost report for Morse Company for July 2014.

P3-6A

Puzzle Me is a company that recycles calendars into jigsaw puzzles. Assembly Dept will apply
glue to cardboard and then presses a calendar page onto the cardboard. The cutting
department cuts the calendar board into puzzle pieces and packages the puzzles in a box.
The box is then moved to finished goods store. During October the company incurred the
following costs:

Assembly Dept
Units:
Beginning W.I.P – units 5,000
Direct Materials - 100% complete
Conversion Costs - 70% complete
Transfer In from Cutting Department 35,000
Completed and Transferred out 30,000
Ending W.I.P - units 10,000
Direct Materials - 100% complete
Conversion Costs - 40% incomplete
Costs:
Beginning WIP
Direct Materials - 100% complete $15,000
Conversion Costs - 90% complete $25,000
Transfer In $40,000
Costs incurred during production in October
Direct Materials $80,000
Direct Labor $40,000
Manufacturing Overhead $60,000

Instruction

Prepare the production cost report for Assembly department for October, 2016