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  • M6 (Wam)

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    Luis Jose
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    The document provides information about process costing for Gutzy Co. in September. It details beginning work in process inventory of 10,000 units that were 25% complete, 120,000 units started, and ending work in process inventory of 30,000 units that were 30% complete. It also provides beginning work in process inventory costs and current period costs for materials and conversion. Using this information, it prepares a cost of production report for Gutzy Co. using the weighted average method, calculating unit costs for materials and conversion and a total unit cost, and determining total costs for completed units and ending work in process.

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    M6 (WAM)

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    The document provides information about process costing for Gutzy Co. in September. It details beginning work in process inventory of 10,000 units that were 25% complete, 120,000 units started, and ending work in process inventory of 30,000 units that were 30% complete. It also provides beginning work in process inventory costs and current period costs for materials and conversion. Using this information, it prepares a cost of production report for Gutzy Co. using the weighted average method, calculating unit costs for materials and conversion and a total unit cost, and determining total costs for completed units and ending work in process.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    3 views2 pages

    M6 (Wam)

    Uploaded by

    Luis Jose
    The document provides information about process costing for Gutzy Co. in September. It details beginning work in process inventory of 10,000 units that were 25% complete, 120,000 units started, and ending work in process inventory of 30,000 units that were 30% complete. It also provides beginning work in process inventory costs and current period costs for materials and conversion. Using this information, it prepares a cost of production report for Gutzy Co. using the weighted average method, calculating unit costs for materials and conversion and a total unit cost, and determining total costs for completed units and ending work in process.

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    © All Rights Reserved
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    of 2

    COST ACCOUNTING

    M6 PROCESS COSTING

    Group Work (GW) under the Discussion Page

    GUTZY Co. has the following information available for September:

    Beginning Work in Process Inventory


    (25% complete as to conversion) 10,000 units
    Started 120,000 units
    Ending Work in Process Inventory
    (30% complete as to conversion) 30,000 units

    Beginning Work in Process Inventory Costs:


    Material P2,100
    Conversion 2,030

    Current Period Costs:


    Material P 33,000
    Conversion 109,695

    All materialsare added at the start of production and all products completed are
    transferred out.

    Prepare the cost of production report for Gucci CO. using the (a) FIFO
    and (b) weighted average method.

    WEIGHTED AVERAGE METHOD

    MATERIALS CONVERSION COST


    TO 100,000 100,000
    EI 30,000 9,000
    EUP 130,000 109,000

    MATERIALS CONVERSION COST


    COST 35,100 111,725
    EUP 130,000 109,000
    0.27/ EQ. UNIT 1.025/ EQ. UNIT

    TOTAL COST/EQ. UNIT 0.27 + 1.025 = 1.295


    COMPLETED 100,000 x 1.295 129,500
    ENDING WIP
    30,000 x .27 8,100
    9,000 x 1.025 9,225
    TOTAL COST 146,825

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