fustrated
Mar 29, 2007, 02:47 PM
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
Recieved 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
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
Recieved 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