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-   -   Prepare a cost of production report. Just, look over what I have done. (https://www.askmehelpdesk.com/showthread.php?t=77250)

  • Mar 29, 2007, 02:47 PM
    fustrated
    Prepare a cost of production report. Just, look over what I have done.
    Hi
    could someone please let me know if this is correct?
    If not please help me.
    Thanks
    :)
    The inventory at May 1 and the costs charged to Work in Process_ Department B during May for Star Company are as follows:
    12,000 units, 2/5 completed... 62,400
    From Department A, 55,000 units... 115,500
    Direct Labor... 364,915
    Factory overhead... 148,000

    During May, all direct materials are transferred from Department A, the units in process at May 1 were completed, and of the 55,000 units entering the department all were completed except 6,000 units which were 3/4 completed. Inventories are costed by the FIFO method.

    1.) Prepare a cost of production report for May.
    ... Whole Units... Direct Materials... Conversion
    Units charged to production:
    Inventory in process May 1... 12,000
    Received from Department A... 55,000
    Total units accounted for by Dept. B... 67,000
    Units to be assigned Cost:
    Inventory in process May 1 2/5 completed 12,000... 0... 7,200
    Started and completed in May... 49,000... 49,000... 49,000
    Tranferred to packing dept in may... 61,000... 49,000... 56,200
    Inventory in process may 31, 3/4 comp... 6,000... 6,000... 4,500
    Total units to be assigned cost... 67,000... 55,000... 60,700
    Computations:
    1.) 60% X 12,000 = 7,200
    2.) 55,000 - 6,000 = 49,000
    3.) 3/4 X 6,000 = 4,500
    Unit Costs:
    Total costs for May in Dept B... 115,500... 512,915
    Total equivalent units / 55,000... / 60,700
    Cost of equivalent unit... 2.1... 8.45
    Cost charged to production inventory in process may... 7,200
    cost incurred in may... 628,415
    Total cost accounted for Dept. B... 635,615

    cost allocated to completed and partially completed units:
    Inventory in process May 1 Balance... 7,200
    To complete inventory in process May 1... 0... 60,840... 60,840
    Started and completed in May... 102,900... 414,050... 516,950
    Tranfered to packing dept... 584,990
    Inventory in process May 31... 12,600... 38,025... 50,625
    Total cost assigned by Dept B... 635,615
    Computations:
    1.) 115,500 + 364,915 + 148,000 =628,415
    2.) 7,200 units X 8.45 = 60,840
    3.) 49,000 units X 2.1 =102,900
    4.) 49,000 units X 8.45 =414,050
    5.) 6,000 units X 2.1 = 12,600
    6.) 4,500 units X 8.45 = 38,025
  • Mar 29, 2007, 02:58 PM
    tickle
    By the time it took you to type this all out and REALLY read it while you were doing it, you could have answered your own question. I cant, sorry.
  • Aug 16, 2012, 07:55 PM
    MayRin_TheCat
    :o I'm working on a Cost of Production Report too but mine's totally different. I'll still try to compare to see if it's basically the right format or not. :3
    Just looking at it now thought, I think you have it right, mine's still not balancing correctly U.u
  • Aug 17, 2012, 05:50 AM
    paraclete
    when dealing with unit costs in these problems you need to deal in equivalent units 12000 units 2/5 complete = 4800

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