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PROCESS COSTING
Team
Identify the situations in which process-costing systems are appropriate. Continuous or Mass Production
Product Flow
Sequential Product Flow
WIP-Dept 1 WIP-Dept 2 F.Goods
Product flow
Parallel Product flow
WIP Dept-1
WIP Dept-2
WIP Assembly Dept
WIP Packaging
WIP Dept-1
WIP Department-2
Finished Goods
What is the journal entry to transfer completed goods from Assembly to Finishing?
Finishing 132,043
Step 4: Summarize total costs to account for. Step 5: Assign total costs to units completed and to units in ending work in process inventory.
Cost from dept 1.. Cost added in dept 2: Materials. Labor. Factory overhead
$ 16320
$ 43415 $ 56100 $ 58575
The quantity schedule shows 12,000 units were received during the month from dept 1; 7,000 units were transferred to finished goods; and 5,000 units in process at the end of June were 50% complete as to materials cost and 25% complete as to conversion cost.
Cost from preceding department: Transferred in during the month (1,2000 units) $ 16,320 $ 1.36 Cost added by Department: Material (43415/9500) 43,415 $ 4.57 Labor (56100/8250) 56,100 6.80 Factory overhead (58575/8250) 58,575 7.10 Total cost to be accounted for $174,410 $19.83
35,600 174,410
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