Equivalent Units and Related Costs; Cost of Production Report: Weighted Average Cost Method Joshua Flour Company manufactures flour by a series of three processes, beginning in the Milling Department. From the Milling Department, the materials p through the Sifting and Packaging departments, emerging as packaged refined flour. The balance in the account Work in Process-Sifting Department was as follows on March 1: Work in Process-Sifting Department (3,200 units, 75% completed) $3,500 The following costs were charged to Work in Process-Sifting Department during March: Direct materials transferred from Milling Department: 14,500 units Direct labor $51,400 13,325 5,125 Factory overhead During March, 14,900 units of flour were completed. The balance of Work in Process-Sifting Department on March 31 was 2,800 units, 50% completed. Required:
Equivalent Units and Related Costs; Cost of Production Report: Weighted Average Cost Method Joshua Flour Company manufactures flour by a series of three processes, beginning in the Milling Department. From the Milling Department, the materials p through the Sifting and Packaging departments, emerging as packaged refined flour. The balance in the account Work in Process-Sifting Department was as follows on March 1: Work in Process-Sifting Department (3,200 units, 75% completed) $3,500 The following costs were charged to Work in Process-Sifting Department during March: Direct materials transferred from Milling Department: 14,500 units Direct labor $51,400 13,325 5,125 Factory overhead During March, 14,900 units of flour were completed. The balance of Work in Process-Sifting Department on March 31 was 2,800 units, 50% completed. Required:
Chapter1: Financial Statements And Business Decisions
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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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Equivalent Units and Related Costs; Cost of Production Report: Weighted Average Cost Method
Joshua Flour Company manufactures flour by a series of three processes, beginning in the Milling Department. From the Milling Department, the materials pass
through the Sifting and Packaging departments, emerging as packaged refined flour.
The balance in the account Work in Process-Sifting Department was as follows on March 1:
Work in Process-Sifting Department (3,200 units, 75% completed) $3,500
The following costs were charged to Work in Process-Sifting Department during March:
Direct materials transferred from Milling Department: 14,500 units $51,400
Direct labor
13,325
Factory overhead.
5,125
During March, 14,900 units of flour were completed. The balance of Work in Process-Sifting Department on March 31 was 2,800 units, 50% completed.
Required:
Prepare a cost of production report for the Sifting Department for March, using the weighted average cost method.
Joshua Flour Company
Cost of Production Report-Sifting Department
For the Month Ended March 31
Units
Units charged to production:
Units
Equivalent Units
of Production
Transcribed Image Text:Units
Units charged to production:
Inventory in process, March 1
Received from Milling Department
Total units accounted for by the Sifting Department
Units to be assigned cost:
Transferred to Packaging Department in March
Inventory in process, March 31
Total units to be assigned cost
Costs
Unit costs:
Total costs for March in Sifting Department
Total equivalent units
Cost per equivalent unit
Costs charged to production:
Inventory in process, March 1
Costs incurred in March
Total costs accounted for by the Sifting Department
Costs allocated to completed and partially completed units:
Units
000
Equivalent Units
of Production
1000 1000
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