REVIEW HANDOUTS_ANSWER KEYS (PROCESS COSTING)

Problem 17: Cost of Produc3on Report

1. FIFO

Department 1
WIP beg 32,500
SIP 120,000
Total units 152,500 EUP
Materials Conversion
WIP beg FT 32,500 20% 6,500 25% 8,125
SIP FT 92,500 100% 92,500 100% 92,500
WIP end 27,500 60% 16,500 20% 5,500
Total units 152,500 115,500 106,125

Beginning WIP Costs Total Cost Unit Cost

Transferred in -
Materials 200,000 -
Conversion 187,500
Current Period 387,500 -
Transferred in -
Materials 875,000 7.57576
Conversion 500,000 1,375,000 4.71143
Total 1,762,500 12.28718

Conversion
Cost Allocation Materials Cost Last Month CFPD Total
WIP beg FT 49,242 38,280 387,500 0 475,023
SIP FT 700,758 435,807 - 0 1,136,564
Total Cost Transferred out 1,611,587
WIP end 125,000 25,913 - 0 150,913
1,762,500

Department 2

WIP beg 22,500

SIP 125,000
Total units 147,500 EUP
Materials Conversion
WIP beg FT 22,500 30% 6,750 60% 13,500
SIP FT 90,000 100% 90,000 100% 90,000
WIP end 35,000 0% - 40% 14,000
Total units 147,500 96,750 117,500
 Beginning WIP Total Cost Unit Cost
Transferred In 287,500
Materials 120,000 -
Conversion 42,500 450,000 -
Current Period
Transferred in 1,611,587 12.89270
Materials 125,000 1.29199
Conversion 300,000 2,036,587 2.55319
Total 2,486,587 16.73788

Transferred in Unit Cost = (1,611,578 / 125,000)

Last
Materials Conversion Month CFPD Total
WIP beg FT 8,721 34,468 450,000 - 493,189
SIP FT 116,279 229,787 - 1,160,343 1,506,409
Total Cost Transferred out 1,999,598
WIP end - 35,745 - 451,244 486,989
2,486,587

2. Average
Department 1
WIP beg 32,500
SIP 120,000
Total units 152,500 EUP
Materials Conversion
FT 125,000 100% 125,000 100% 125,000
WIP end 27,500 60% 16,500 20% 5,500
Total units 152,500 141,500 130,500

Cost Schedule Last Month This Month Total Unit Cost

Transferred in - - - -
Materials 200,000 875,000 1,075,000 7.59717
Conversion 187,500 500,000 687,500 5.26820
1,762,500 12.86537

Materials Conversion CFPD Total

FT 949,647 658,525 0 1,608,172
Total Cost Transferred out 1,608,172
WIP end 125,353 28,975 0 154,328
1,762,500

Department 2
WIP beg 22,500
SIP 125,000
Total units 147,500 EUP
Materials Conversion
SIP FT 112,500 100% 112,500 100% 112,500
WIP end 35,000 0% - 40% 14,000
Total units 147,500 112,500 126,500
 Beginning WIP Last Month This Month Total Cost Unit Cost
Transferred in 287,500 1,608,172 1,895,672 12.85201
Materials 120,000 125,000 245,000 2.17778
Conversion 42,500 300,000 342,500 2.70751
2,483,172 17.73730

Transferred in Cost (1,895,672 / 147,500)

Materials Conversion CFPD Total

SIP FT 245,000.00 304,594.86 1,445,851.18 1,995,446.04

Total Cost Transferred out 1,995,446.04
WIP end - 37,905.14 449,820.37 487,725.51
2,483,171.55

Problem 15: Cost of Produc3on Report (FIFO METHOD)

Cutting
WIP beg 6,000
SIP 44,000
Total Units 50,000

FIFO Units M CC
WIP beg FT 6,000 0% - 1/3 2,000
SIP FT 34,000 100% 34,000 100% 34,000
WIP end 10,000 100% 10,000 3/5 6,000
Total 50,000 44,000 42,000

WIP beg
Materials
CC -
5,200
This Month
Materials 19,800 0.45
CC 16,800 0.40
41,800 0.85

M CC Last Month Total

WIP beg FT - 800.00 5,200.00 6,000.00
SIP FT 15,300 13,600.00 - 28,900.00
Total 34,900.00
WIP end 4,500 2,400.00 - 6,900.00
41,800.00
Finishing
WIP beg 5,000
Transferred in 40,000
Total Units 45,000

FIFO Units M CC
WIP beg FT 5,000 30% 1,500 2/5 2,000
SIP FT 32,000 100% 32,000 100% 32,000
WIP end 8,000 70% 5,600 7/8 7,000
Total 45,000 39,100 41,000

WIP beg
Transferred in
Materials
CC -
10,685
This Month
Transferred in 34,900 0.872500
Materials 34,799 0.89000
CC 45,920 1.12000
126,304 2.8825

M CC Last Month CFPD Total

WIP beg FT 1,335 2,240.00 10,685.00 - 14,260.00
SIP FT 28,480 35,840.00 - 27,920.00 92,240.00
Total 106,500
WIP, end 4,984 7,840 - 6,980.00 19,804.00
Total Cost 126,304.00

Problem 16: Cost of Produc3on Report (WEIGHTED AVERAGE METHOD)

WIP beg 15,000

SIP 20,000
Total Units 35,000

Cutting
Weighted Average Units M CC
FT 30,000 100% 30,000 100% 30,000
WIP end 5,000 100% 5,000 2/5 2,000
Total 35,000 35,000 32,000

M CC
WIP beg 8,930 4,365
This MOnth 10,860 9,715
Total 19,790 14,080
Divide by EUP 35,000 32,000
0.56543 0.44000 0.99

M CC Last Month Total

FT 16,962.90 13,200.00 - 30,162.90
Total 30,162.90
WIP end 2,827.15 880.00 - 3,707.15
33,870.05

Finishing
Weighted Average Units M CC

FT 31,000 100% 31,000 100% 31,000

WIP end 8,000 100% 8,000 7/8 7,000
Total 39,000 39,000 38,000

M CC Transferred in Total cost

WIP beg. 4,464 3,330 8,910 16,704.00
This Month 30,636 38,850 30,162.90 99,648.90
Total 35,100 42,180 39,072.90 116,352.90
Divide by EUP 39,000 38,000 39,000
0.90000 1.11000 1.00187 3.00000

M CC Last Month Total

FT 27,900 34,410.00 31,057.97 93,367.97
Total 93,367.97
WIP end 7,200 7,770.00 8,014.96 22,984.96
116,352.93