KRISTEL AN T. LAMORENA ASSESSMENT 3.

3 COST ACCTNG BS Management Accounting II

Prepare a cost of production report for March using FIFO:

Ivory Maude Company

Cost Report
March 31, 2022

MATERIAL CC

Work In Process – Beg. 8,000 0 1,600

Started & Completed 11,500 11,500 11,500

Work In Process – End 15,000 15,000 8,250

Normal Spoilage 6,000 0 0

Abnormal Spoilage 2,500 2,500 2,500

Accounted For 43,000 29,000 23,850

Material $ 50,000/29,000 = $1.72

Conversion Cost $ 175,000/23,850 = $7.34

Cost Assignment
Work In Process – End
15,000 x $1.72 $ 25,800
8,250 x $7.34 60,555 $ 86,355
Abnormal Spoilage
2,500 x $ 9.06 22,650
Cost Transferred Out ($284,000-$86,355-$22,650) $174,995
TOTAL COSTS ACCOUNTED FOR $ 284,000
Prepare a cost of production report assuming the weighted average method:

Ivory Maude Company

Cost Report
March 31, 2022

MATERIAL CC .

Transferred Out 19,500 19,500 19,500

Work In Process – End 15,000 15,000 8,250

Normal Spoilage 6,000 0 0

Abnormal Spoilage 2,500 2,500 2,500

Accounted For 43,000 37,000 30,250

Material $ 64,000/37,000 = $1.73

Conversion Cost $ 220,000/30,250 = $7.27

Cost Assignment
Work In Process – End
15,000 x $1.73 $ 25,950
8,250 x $7.27 59,978 $ 85,928
Abnormal Spoilage
2,500 x $ 9.00 22,500
Cost Transferred Out ($284,000-$86,355-$22,650) $175,572
TOTAL COSTS ACCOUNTED FOR $ 284,000