Woodrose Corporation produces a product in two departments- A and B.

Data for the month of August, 20

are given as follows for Department B.

UNITS
Received from Deparmtent A 50,000
Completed and transferred to warehouse 40,000
In process, Aug 31 (60% completed) 5,000
Lost during the month 5,000

COSTS
From Department A 225,000
Added in Department B during the month
Materials 135,000
Labor 103,200
Factory overhead 103,200
r the month of August, 2019 I. Lost units classified as normal, discovered at the b
WOODROSE CORPORATIO
Cost of Production Report
For the month ended August 31,

Materials
Quantity Schedule Actual WD
Units received 50,000

Units completed 40,000 100%

Units in process 5,000 100%
Units lost 5,000
50,000

Costs charged to the department

Cost added in the department

Materials
Labor
Factory overhead
Total cost added
Adjustments for lost units
Total costs to be accounted for

Cost accounted for as follows

Completed & transferred
In process, end
Cost from preceding department
Materials
Labor
Overhead
Total costs as accounted for
mal, discovered at the beginning of the process (A-1) First Step
OODROSE CORPORATION Computations
Cost of Production Report Unit cost:
e month ended August 31, 2019

Materials Labor and Overhead

EP WP EP

40,000 100% 40,000

5,000 60% 3,000
2nd Step
45,000 43,000 Adjustment for lost units
Method 1
225,000 4.5

135,000 3.00
103,200 2.40
103,200 2.40
341,400 7.80
0.50 Method 2
₱ 566,400 12.80

512,000

25,000
15,000 Third Step
7,200 Cost of units completed
7,200 54,400 In process at the end
566,400
mputations
Materials 135,000 =
45,000

Labor 103,200 =
43,000

Factor OH 103,200 =
43,000

djustment for lost units

Cost from preceding department -
Total units (less) lost units

225,000 -
45,000

0.5

Unit lost x unit cost from preceding dept

Total units (less) units lost

5,000 x 4.50
45,000

0.5

st of units completed 40,000 x 12.80

process at the end
Cost from preceding dept 5,000 x 5.00
Materials 5,000 x 3.00
Labor 3,000 x 2.40
Overhead 3,000 x 2.40
 3.00 1 Work in process- Dept B
Work in process- Dept A

2.40 2 Work in process- Dept B

Materials
Payroll
2.40 Factory Overhead Applied

3 Finished Goods
Work in process- Dept B

unit cost from preceding dept

4.5

512,000

25,000
15,000
7,200
7,200
rk in process- Dept B 225,000
Work in process- Dept A 225,000

rk in process- Dept B 341,400

Materials 135,000
Payroll 103,200
Factory Overhead Applied 103,200

shed Goods 512,000

Work in process- Dept B 512,000
Woodrose Corporation produces a product in two departments- A and B. Data for the month of August, 20
are given as follows for Department B.

UNITS
Received from Deparmtent A 50,000
Completed and transferred to warehouse 40,000
In process, Aug 31 (60% completed) 5,000
Lost during the month 5,000

COSTS
From Department A 225,000
Added in Department B during the month
Materials 135,000
Labor 103,200
Factory overhead 103,200
r the month of August, 2019 II. Lost units classified as normal, discovered a
WOODROSE CORPORA
Cost of Production Rep
For the month ended Augus

Materials
Quantity Schedule Actual WD
Units received 50,000

Units completed 40,000 100%

Units in process 5,000 100%
Units lost 5,000 100%
50,000

Costs charged to the department

Cost added in the department

Materials
Labor
Factory overhead
Total cost added

Total costs to be accounted for

Cost accounted for as follows

Completed & transferred
In process, end
Cost from preceding department
Materials
Labor
Overhead
Total costs as accounted for
normal, discovered at the end of the process (A-3) First Step
OODROSE CORPORATION Computations
ost of Production Report Unit cost:
e month ended August 31, 2019

Materials Labor and Overhead

EP WP EP

40,000 100% 40,000

5,000 60% 3,000
5,000 100% 5,000 Second Step
50,000 48,000 NO COST FOR LOST UNIT

225,000 4.50

135,000 2.70
103,200 2.15
103,200 2.15
341,400 7.00

₱ 566,400 11.50

517,500

22,500
13,500 Third Step
6,450 Cost of units completed
6,450 48,900 In process at the end
566,400
mputations
Materials 135,000 =
50,000

Labor 103,200 =
48,000

Factor OH 103,200 =
48,000

cond Step
O COST FOR LOST UNITS IS NECESSARY

st of units completed (40,000 x 11.50) + (5,000 x 11.50) =

process at the end
Cost from preceding dept 5,000 x 4.50
Materials 5,000 x 2.70
Labor 3,000 x 2.15
Overhead 3,000 x 2.15
 2.70 1 Work in process- Dept B
Work in process- Dept A

2.15 2 Work in process- Dept B

Materials
Payroll
2.15 Factory Overhead Applied

3 Finished Goods
Work in process- Dept B

517,500

22,500
13,500
6,450
6,450
rk in process- Dept B 225,000
Work in process- Dept A 225,000

rk in process- Dept B 341,400

Materials 135,000
Payroll 103,200
Factory Overhead Applied 103,200

shed Goods 517,500

Work in process- Dept B 517,500
Woodrose Corporation produces a product in two departments- A and B. Data for the month of August, 20
are given as follows for Department B.

UNITS
Received from Deparmtent A 50,000
Completed and transferred to warehouse 40,000
In process, Aug 31 (60% completed) 5,000
Lost during the month 5,000

COSTS
From Department A 225,000
Added in Department B during the month
Materials 135,000
Labor 103,200
Factory overhead 103,200
r the month of August, 2019 III. Lost units classified as abnormal,
WOODROSE CORPORA
Cost of Production Re
For the month ended Augus

Materials
Quantity Schedule Actual
Units received 50,000

Units completed 40,000

Units in process 5,000
Units lost 5,000
50,000

Costs charged to the department

Cost accounted for as follows

Completed & transferred
Factory overhead control
In process, end
Cost from preceding department
Materials
Labor
Overhead
Total costs as accounted for

NOTE: If the department given in the previous problem is the l

and the spoiled units (lost units) are with a sales value P7.00 eac
section will appear as follows:

Cost accounted for as follows

Completed & transferred
Transferred to Spoiled Goods Inventory
Factory overhead control
Less: Market value of spoiled units

In process, end
Cost from preceding department
Materials
Labor
 Overhead
Total costs as accounted for
ost units classified as abnormal, discovered at the end
WOODROSE CORPORATION
Cost of Production Report
For the month ended August 31, 2019

Materials Labor and Overhead

WD EP WP EP

100% 40,000 100% 40,000

100% 5,000 60% 3,000

45,000 43,000

225,000 4.5

(40,000 x 11.50) 460,000

(5,000 x 11.50) 57,500

(5,000 x 4.50) 22,500

(5,000 x 2.70) 13,500
(3,000 x 2.15) 6,450
(3,000 x 2.15) 6,450 48,900
566,400

en in the previous problem is the last department in the process

s) are with a sales value P7.00 each, the cost accounted for

(40,000 x 11.50) 460,000

s Inventory (5,000 x 7.00) 35,000
(5,000 x 11.50) 57,500
35,000

(5,000 x 4.50) 22,500

(5,000 x 2.70) 13,500
(3,000 x 2.15) 6,450
(3,000 x 2.15) 6,450 48,900
₱ 566,400
First Step
Computations
Unit cost: Materials 135,000 =
50,000

Labor 103,200 =
48,000

Factor OH 103,200 =
48,000
2.70 1 Work in process- Dept B
Work in process- Dept A

2.15 2 Work in process- Dept B

Materials
Payroll
2.15 Factory Overhead Applied

3 Finished Goods
Factory Overhead Control
Work in process- Dept B

1 Work in process- Dept B

Work in process- Dept A

2 Work in process- Dept B

Materials
Payroll
Factory Overhead Applied

3 Finished Goods
Spoiled Goods Inventory
Factory Overhead Control
Work in process- Dept B
rk in process- Dept B 225,000
Work in process- Dept A 225,000

rk in process- Dept B 341,400

Materials 135,000
Payroll 103,200
Factory Overhead Applied 103,200

shed Goods 460,000

tory Overhead Control 57,500
Work in process- Dept B 517,500

rk in process- Dept B 225,000

Work in process- Dept A 225,000

rk in process- Dept B 341,400

Materials 135,000
Payroll 103,200
Factory Overhead Applied 103,200

shed Goods 460,000

iled Goods Inventory 35,000
tory Overhead Control 22,500
Work in process- Dept B 517,500