P10-5 Perth Amboy Corporation manufactures white board in a two-department processes. The Assembly Department uses weighted average costing and the stage of completion of overhead is unrelated to labor. The Finishing Department uses FIFO costing. Materials are added to the final units from Assembly and overhead is applied on the basis of direct labor. The cost accountant gathered the following data for the two departments during the month of October 2015: Assembly Department Units 1,200 Beginning WIP inventory (100% complete for direct materials, 30% complete for direct labor and 40% complete for overhead) Units started in October 7,000 1,000 Ending WIP inventory (100% complete for direct materials, 60% complete for direct labor and 70% complete for overhead) OH Total Costs Beginning WIP inventory Current period Total costs DM P11,500 DL P12,700 P10,300 70,000 P34,500 245,000 80,000 P92,700 P80,300 P279,500 95,000 P106,500 Einishing Department Units 2,000 Beginning WIP inventory (100% complete for transferred in, 20% complete for direct materials and 30% complete for conversion) Units started in October Ending WIP inventory 7,200 1,800 (100% complete for transferred in, 30% complete for direct materials and 60% complete for conversion)
P10-5 Perth Amboy Corporation manufactures white board in a two-department processes. The Assembly Department uses weighted average costing and the stage of completion of overhead is unrelated to labor. The Finishing Department uses FIFO costing. Materials are added to the final units from Assembly and overhead is applied on the basis of direct labor. The cost accountant gathered the following data for the two departments during the month of October 2015: Assembly Department Units 1,200 Beginning WIP inventory (100% complete for direct materials, 30% complete for direct labor and 40% complete for overhead) Units started in October 7,000 1,000 Ending WIP inventory (100% complete for direct materials, 60% complete for direct labor and 70% complete for overhead) OH Total Costs Beginning WIP inventory Current period Total costs DM P11,500 DL P12,700 P10,300 70,000 P34,500 245,000 80,000 P92,700 P80,300 P279,500 95,000 P106,500 Einishing Department Units 2,000 Beginning WIP inventory (100% complete for transferred in, 20% complete for direct materials and 30% complete for conversion) Units started in October Ending WIP inventory 7,200 1,800 (100% complete for transferred in, 30% complete for direct materials and 60% complete for conversion)
Chapter5: Process Costing
Section: Chapter Questions
Problem 14PA: Loanstar had 100 units in beginning inventory before starting 950 units and completing 800 units....
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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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Transcribed Image Text:P10-5 Perth Amboy Corporation manufactures white board in a two-department processes.
The Assembly Department uses weighted average costing and the stage of completion
of overhead is unrelated to labor. The Finishing Department uses FIFO costing. Materials
are added to the final units from Assembly and overhead is applied on the basis of direct
labor.
The cost accountant gathered the following data for the two departments during the
month of October 2015:
Assembly Department
Units
Beginning WIP inventory
(100% complete for direct materials, 30% complete for direct
labor and 40% complete for overhead)
Units started in October
1,200
7,000
1,000
Ending WIP inventory
(100% complete for direct materials, 60% complete for direct
labor and 70% complete for overhead)
OH
Total
DL
P12,700 P10,300
80,000
P92,700 P80,300 P279,500
DM
Costs
Beginning WIP inventory
Current period
Total costs
P34,500
P11,500
95,000
P106,500
70,000
245,000
Finishing Department
Units
2,000
Beginning WIP inventory
(100% complete for transferred in, 20% complete for direct
materials and 30% complete for conversion)
Units started in October
Ending WIP inventory
7,200
1,800
(100% complete for transferred in, 30% complete for direct
materials and 60% complete for conversion)
Transcribed Image Text:Transferred in
P18,500
Conversion
P15,400 P34,300 P68,200
DM
Costs
Beginning WIP inventory
Current period
Total
?
106,500
160,000
84,000
P99,400 P194,300
Total costs
Required: Prepare the following:
a. Cost of production report for Assembly Department
b. Cost of production report for Finishing Department
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