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  • Product Costing Sample (Managerial Accounting)

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    Ynna Mendoza
    5 views3 pages
    The document outlines a 4 step process to calculate the cost of goods manufactured using a job order costing method. Step 1 provides beginning inventory and units started/completed. Step 2 shows the units in ending inventory by direct material. Step 3 gives beginning inventory costs and current manufacturing costs by direct material. Step 4 reconciles the costs by calculating equivalent units for completed and ending inventory, then applies the unit costs to determine total direct material and conversion costs. The total manufactured costs are $1,893,120.

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    The document outlines a 4 step process to calculate the cost of goods manufactured using a job order costing method. Step 1 provides beginning inventory and units started/completed. Step 2 shows the units in ending inventory by direct material. Step 3 gives beginning inventory costs and current manufacturing costs by direct material. Step 4 reconciles the costs by calculating equivalent units for completed and ending inventory, then applies the unit costs to determine total direct material and conversion costs. The total manufactured costs are $1,893,120.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    5 views3 pages

    Product Costing Sample (Managerial Accounting)

    Uploaded by

    Ynna Mendoza
    The document outlines a 4 step process to calculate the cost of goods manufactured using a job order costing method. Step 1 provides beginning inventory and units started/completed. Step 2 shows the units in ending inventory by direct material. Step 3 gives beginning inventory costs and current manufacturing costs by direct material. Step 4 reconciles the costs by calculating equivalent units for completed and ending inventory, then applies the unit costs to determine total direct material and conversion costs. The total manufactured costs are $1,893,120.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    STEP 1

    Beginning inventory 200


    Add: Units started 1,800
    Total units 2,000
    Emding inv. 400
    Complete 1,600

    STEP 2
    Units in ending inventory

    Direct Materials 400

    Conversion cost 400

    Physical Units Direct Materials


    1600 1600
    400 400
    2000

    STEP 3
    Direct Materials
    Beginning inventory cost 84000
    Current manifacturing costs 810000

    DM ccost per equivalent unit


    Conversion cost per equivalent units

    STEP 4 Reconcile

    Units completed and transferred


    Ending inventory
    x Percentage of Completion Equivalent Units

    x 100% = 400

    x 60% = 240

    Equivalent Units
    rect Materials Conversion Cost
    1600
    240
    1840

    rect Materials Conversion Cost


    + 81120 = 165120
    + 918000 = 1728000
    ₱ 1,893,120.00

    P 447
    P 543

    Direct Materials Conversion Cost


    1600 x 447 715,200 1600 x
    400 x 447 178,800 240 x
    version Cost
    543 868,800 = 1,584,000
    543 130,320 = 309,120
    ₱ 1,893,120.00

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