cess cost production in assembly department and finishing department. The following data for the year ende December 31, 2020 are provided: Assembly Department Units Cost January 1, 2020 100,000 units – 40% completed Cost of Direct material – P3M as to conversion cost Cost of Direct labor - P5M Cost of Factory Overhead - P2M 150,000 units – 80% completed as to conversion cost 400,000 units December 31, 2020 Units started DM cost added - P12M DL cost – P15M FOH cost- P1зм Finishing Department Units Costs January 1, 2020 50,000 units – 70% incomplete conversion cost Cost of Transferred in - P10M DM cost – P6M DL cost – PIM FOH cost – P3M 30,000 units – 10% incomplete as ? to conversion cost December 31, 2020 Units started ? DM cost – P30M DL cost – P40M FOH cost – P10M Additional information: a. It is the company's policy to add conversion cost evenly throughout the period in the twe departments. All direct materials in the assembly department are added at the start of the process while all direct materials in the finishing department are added at the end of the process. b. There is no spoilage in both departments. Answer the following: 43. In the assembly department, what is the cost of goods manufactured for the year ended Decembe. 31, 2020? 44. In the assembly department, what is the cost assigned to December 31, 2020 WIP inventory? 45. In the finishing department, what is the cost of goods manufactured for the year ended Decembe. 31, 2020? 46. In the finishing department, what is the cost assigned to December 31, 2020 WIP inventory?
cess cost production in assembly department and finishing department. The following data for the year ende December 31, 2020 are provided: Assembly Department Units Cost January 1, 2020 100,000 units – 40% completed Cost of Direct material – P3M as to conversion cost Cost of Direct labor - P5M Cost of Factory Overhead - P2M 150,000 units – 80% completed as to conversion cost 400,000 units December 31, 2020 Units started DM cost added - P12M DL cost – P15M FOH cost- P1зм Finishing Department Units Costs January 1, 2020 50,000 units – 70% incomplete conversion cost Cost of Transferred in - P10M DM cost – P6M DL cost – PIM FOH cost – P3M 30,000 units – 10% incomplete as ? to conversion cost December 31, 2020 Units started ? DM cost – P30M DL cost – P40M FOH cost – P10M Additional information: a. It is the company's policy to add conversion cost evenly throughout the period in the twe departments. All direct materials in the assembly department are added at the start of the process while all direct materials in the finishing department are added at the end of the process. b. There is no spoilage in both departments. Answer the following: 43. In the assembly department, what is the cost of goods manufactured for the year ended Decembe. 31, 2020? 44. In the assembly department, what is the cost assigned to December 31, 2020 WIP inventory? 45. In the finishing department, what is the cost of goods manufactured for the year ended Decembe. 31, 2020? 46. In the finishing department, what is the cost assigned to December 31, 2020 WIP inventory?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter6: Process Costing
Section: Chapter Questions
Problem 20E: Holmes Products, Inc., produces plastic cases used for video cameras. The product passes through...
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Question
Transcribed Image Text:Sayon Company employs FIFO process costing system concerning its only product which undergoes
production in assembly department and finishing department. The following data for the year endec
December 31, 2020 are provided:
Assembly Department
Units
Cost
January 1, 2020
100,000 units – 40% completed
Cost of Direct material – P3M
as to conversion cost
Cost of Direct labor – P5M
Cost of Factory Overhead – P2M
150,000 units – 80% completed
as to conversion cost
400,000 units
December 31, 2020
?
Units started
DM cost added – P12M
DL cost – P15M
FOH cost – P13M
Finishing Department
Units
Costs
Cost of Transferred in - P10M
January 1, 2020
50,000 units – 70% incomplete
conversion cost
DM cost – P6M
DL cost – P1M
FOH cost - P3М
30,000 units - 10% incomplete as ?
to conversion cost
December 31, 2020
Units started
DM cost – P30M
DL cost – P40M
FOH cost – P10M
Additional information:
a. It is the company's policy to add conversion cost evenly throughout the period in the two
departments. All direct materials in the assembly department are added at the start of the
process while all direct materials in the finishing department are added at the end of the
process.
b. There is no spoilage in both departments.
Answer the following:
43. In the assembly department, what is the cost of goods manufactured for the year ended December
31, 2020?
44. In the assembly department, what is the cost assigned to December 31, 2020 WIP inventory?
45. In the finishing department, what is the cost of goods manufactured for the year ended December
31, 2020?
46. In the finishing department, what is the cost assigned to December 31, 2020 WIP inventory?
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