INTEGRATIVE PROJECT STAGE 2

EXERCISE
The industrial company Sar S.A. at the beginning of the fiscal year of April 1, 20XX
presents

Banks $2 000 000.00 Debtor

Raw materials warehouse 2 000 000.00 Debtor
In-process production inventory 135,920.00 Debtor
Finished goods warehouse 864,080.00 Debtor
Accounts payable 2 000 000.00 Creditor
Capital stock 3 000 000.00 Creditor
Labor Results Costs

During the month of April 20XX, the following consumptions were recorded in the
process of d
Process 1
Initial in-process production inventory, 3200 liters with the following degrees of av

Degree of
progress
Concept % Total cost
Raw materials 100 92 480.00
Labor 75 38 880.00
Indirect charges 75 4 560.00

The costs incurred in the month of April 199X were as follows

Raw materials:
Item A, 26 250 liters at $18.50 per liter 485,625.0
Item B, 24 000 liters at $23.00 per liter 0
Item C, 7 500 liters at $28.80 per liter 552,000.0
0
Labor, 32 400 hours at $22.00 per hour 216,000.0
712800
Indirect charges, $96,000.00 0

The production completed during April and transferred to process 2 was 42 0

The final inventory of the process was 3,800 liters with the following levels of
progress:
Concept Degree of progress
Raw materials (%)
Labor Indirect 100
Charges 85
85
Process 2
The costs incurred in the month of April 20XX were as follows:
Labor, 31,680 hours at $25 per hour
Indirect Charges $90,000.00

Production completed during April and transferred to process 2 was 42,000 tons.
 ACTIVITIES
Present the costs of each process in spreadsheets Prepare cost report for each process
Record entries in G/L schedules

Source: Garcia, J. (2010). Cost Accounting. [DX Reader Version] Retrieved from: https:/
The following balances
were recorded:
Banks Assets
You See Liabili
must
Cargo Fertiliz ties
Capital
2,000,000.00 er

Expens Debtor
eesmanufacture of item X: ance and costs:

00 liters.

792,000.00
90,000.00
882,000.00

0 liters
/elibro.net/en/ereader/uvm/
73535
Nature Accounts Receivable Accounts Payable Accounts Payable
 INTEGRATIVE PROJECT STAGE 2
Process ballots

Initial Production Inventory in Pr

Concept Volume % progress
Raw Materials 3200 100%
Labor 3200 75%
Indirect Charges 3200 75%
Total

Schedule 1 Determination of Express Processed Production

Ending Inventory

Concept Finished production Lts Volume % progress

Raw Materials 42000 3800 100%

Labor 42000 3800 85%
Indirect Charges 42000 3800 85%
1 2 3

Schedule 2 Calculation of the unit cost of production Proce

Concept Costs Incurred Processed production for the period
Raw Materials $ 1,253,625.00 $ 42,600.00
Labor $ 712,800.00 $ 42,830.00
Indirect Charges $ 96,000.00 $ 42,830.00
Total $ 2,062,425.00

Schedule 3 Calculation of the c

Cost

Concept Beginning Inventory Incurred from the period

Raw Materials 92,480 1,253,625

Labor 38,880 712,800
Indirect Charges 4,560 96,000
Total 135,920 2,062,425

Valuation of finished production

Concept ProductionCompleted Unitary
Raw Materials 42000 $ 29.39
Labor 42000 $ 16.62
Indirect Charges 42000 $ 2.22
Total $ 48.23

Schedule 5 valuation of the ending production inventory in p

Ending Inventory
Concept Volume % progress Equivalent Units

Raw Materials 3800 100% 3800.00

Labor 3800 85% 3230.00
Indirect Charges 3800 85% 3230.00
Total

Schedule 2 Determination of Processed Production expressed in pcs.

Final Production Inventory in Pro

Concept Finished Production Volume % Progress

Raw Materials 42000 $ - 0

Labor 42000 $ - 0
Indirect Charges 42000 $ - 0

Schedule 2 Costing of Processed Production in this case equal to the

Production
Concept Cost Incurred Processed = Unit Cost
Finished
Raw material (semiproduct) $ 1,234,419.43 42,000 29.39
Labor $ 792,000.00 42,000 18.86
Indirect Charges $ 90,000.00 42,000 2.14
Total $ 2,116,419.43 50.39
No ending inventory
ocess
Equivalent units Unitary Total
3200.00 $ 28.90$ 92,480.00
2400.00 $ 16.20$ 38,880.00
2400.00 $ 1.90$ 4,560.00
$ 47.00$ 135,920.00

in equivalent units
Processed
Equivalent units Volume % progress Equivalent units production for
the period

3800.00 3200 100% 3200.00 $ 42,600.00

3230.00 3200 75% 2400.00 $ 42,830.00
3230.00 3200 75% 2400.00 $ 42,830.00
Beginning Inventory
sada
Unit Cost
$ 29.43
$ 16.64
$ 2.24
$ 48.31
45 6 7 8

Average unit costs

Units Equivalent to Total Products

Beginning Processed production for Average Unit

Total the period Total Cost
Inventory

1,346,105 3200.00 42600.00 45800.00 $ 29.39

751,680 2400.00 42830.00 45230.00 $ 16.62
100,560 2400.00 42830.00 45230.00 $ 2.22
 2,198,345 $ 48.23

Total
$ 1,234,419.43
$ 698,000.44
$ 93,378.73
$ 2,025,798.61

rocess
Cost
Unitary Total

$ 29.39 $ 111,685.57
$ 16.62 $ 53,679.56
$ 2.22 $ 7,181.27
$ 48.23 $ 172,546.39

equivalent amounts
ceso
Processed
U. Equivalents production for the
period
0$ 42,000.00
0$ 42,000.00
0$ 42,000.00

finished

Valuation

1,234,419
792,000
90,000
2,116,419
 2*3
5*6
II II II II

1+4-7
 INTEGRATIVE PROJECT STAGE 3
Production cost report Process Plant No. 1 April 1 through April 30, 199X
Units and Cost
Concept MPD MOD
Beginning Inventory
Volume (liters)
Degree of progress
Equivalent Units
Total Cost
Unit cost(pesos) #DIV/0! #DIV/0!

Processed Production
Volume (liters) 42,600 42,830
Degree of progress
Equivalent Units
Total Cost 1,253,625 712,800
Unit cost(pesos) 29.43 16.64

Grand Total
Volume (liters) 45,800 45,230
Degree of progress
Equivalent Units
Total Cost 1,346,105 751,680
Unit cost(pesos) 29.39 16.62

Finished Production
Volume (liters) 42,000 42,000
Total Cost 1,234,419 698,000
Unit cost(pesos) 29.39 16.62

Ending Inventory
Volume (liters) 3,800 3,800
Degree of progress
Equivalent Units 3,800 3,230
Total Cost 111,686 53,680
Unit cost(pesos) 29.39 14.13

Grand Total
Volume (liters) 45,800 45,800
Equivalent Units
Total Cost 1,346,105 751,680
Unit cost(pesos) #DIV/0! #DIV/0!
 Production cost report Process Plant No. 2
April 1 to April 30, 199X

Units and Cost

Concept MPD MOD
Beginning Inventory
Volume (liters)
Degree of progress 0% 0%
Equivalent Units
Total Cost
Unit cost(pesos) 0 0

Processed Production
Volume (liters) 42,000 42,000
Degree of progress
Equivalent Units
Total Cost 1,234,419 792,000
Unit cost(pesos) 29.39 18.86

Grand Total
Volume (liters) 42,000 42,000
Degree of progress
Equivalent Units 42,000 42,000
Total Cost 1,234,419 792,000
Unit cost(pesos) 29.39 18.86

Finished Production
Volume (liters)
Total Cost 1,234,419 792,000
Unit cost(pesos) #DIV/0! #DIV/0!

Ending Inventory
Volume (liters) 0 0
Degree of progress 0% 0%
Equivalent Units 0 0
Total Cost 0 0
Unit cost(pesos) 0.00 0.00

Grand Total
Volume (liters)
Equivalent Units
Total Cost 1,234,419 792,000
Unit cost(pesos) #DIV/0! #DIV/0!
o Production
VAT ID TOTAL

#DIV/0! #DIV/0!

42,830

96,000
2.24 48.31

45,230

100,560
2.22 48.23

42,000
93,379
2.22 48.23

3,800

3,230
7,181
1.89 45.41

45,800

100,560
#DIV/0! #DIV/0!
o Production

CI TOTAL

0
0%
0
0
0

42,000

90,000
2.14 50.39

42,000

42,000
90,000
2.14 50.39

90,000
#DIV/0! #DIV/0!

0 0
0% 0
0 0
0 0
0.00 0.00

90,000
#DIV/0! #DIV/0!
 INTEGRATIVE PROJECT STAGE 3
Scheme of major process 1

Banks

Raw Materials Warehouse

Production in process 1 Labor

Finished goods warehouse Accounts payable

Indirect charges Various

Accounts
Capital Stock
Banks $2 000 000.00
Raw materials warehouse 2 000 000.00
In-process production inventory 135 920.00
Finished goods warehouse 864 080.00
Accounts payable 2 000 000.00
Capital stock 3 000 000.00